Fernhill Corporation (FERN)

[coconutgrove491]

Simply put, a ‘Pincher Play’ is series of two individual steps. The first step is the pattern developing. You will see this occurring by looking at the technical indicators. I like to use stockcharts.com for most of my technical analysis. It’s free and works pretty well for swing trading.

The second step is known as the ‘Play.’ The play occurs when volume rises and the pinch begins to spread apart rapidly. It is possible for the pinch to break apart without a run occurring.

What is important is that a great rate of separation between the PPO and ADX occurs while there is significant positive buying volume. If that sounds like a lot of jargon or overly complicated, don’t worry – it’s not as bad as you might think.


$FERN