TOP GUN

[BooDog]

basically its a chart set up based on the ADX and PPO. Take a look at WEST for example. Watching this type of set up helps zoom in on when to watch closer for a decent entry. When the ADX moves up and the PPO moves down - as they come close together it creats a pinch. The key is to watch other factors such as divergence and it helps to see what is causing the sell off. If the company is diluting or there are convertibles/warrants being excercised then the pinch could easily fail to perfom. I like to watch them when they look to be setting up on a 1 month chart. WEST is worth watching closer imo. As it sets up move to the shorter term charts and watch the divergence, accumulation and the money flow. Others will be watching too so you have to be warry - either way, making sure you keep a stop loss in mind incase it does fail.