Thursday, December 12, 2013 3:54:05 PM
ACDU Chart Lesson, Pincher Alert
Why You Need To Care About Pincher Plays…
They occur very frequently and can often be extremely profitable.
Some stocks have recently run nearly 200% . If you knew what to look for, you could have made this play and nearly tripled your investment.
After This Tutorial You Will Know
How To Stop A Pincher Pattern Developing
When To ‘Buy In’ To The Stock
What Indicators That May Indicate The End Of The Run
What Is It?
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.
A Closer Look At The Technical Analysis
For this stock I will be looking at STP which had a great run in early April of 2013. STP is a penny stock that developed a ‘pincher pattern’ and then a ‘play.’ In the case of STP you could see the pattern developing because the:
The PPO drops towards the -30 marker while
The ADX rises towards the 60 marker at the same time
When the PPO is placed above the ADX on a chart, the two lines will begin to ‘pinch’ together.
- See more at: http://www.pennystock911.com/technical-analysis-guide-pincher-play/#sthash.MewqMkxK.dpuf
Why You Need To Care About Pincher Plays…
They occur very frequently and can often be extremely profitable.
Some stocks have recently run nearly 200% . If you knew what to look for, you could have made this play and nearly tripled your investment.
After This Tutorial You Will Know
How To Stop A Pincher Pattern Developing
When To ‘Buy In’ To The Stock
What Indicators That May Indicate The End Of The Run
What Is It?
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.
A Closer Look At The Technical Analysis
For this stock I will be looking at STP which had a great run in early April of 2013. STP is a penny stock that developed a ‘pincher pattern’ and then a ‘play.’ In the case of STP you could see the pattern developing because the:
The PPO drops towards the -30 marker while
The ADX rises towards the 60 marker at the same time
When the PPO is placed above the ADX on a chart, the two lines will begin to ‘pinch’ together.
- See more at: http://www.pennystock911.com/technical-analysis-guide-pincher-play/#sthash.MewqMkxK.dpuf
This info is not to be construed as a solicitation to buy/sellsecurities. Hdogtx reserves the right to either BUY/SELL shares in a company's stock he mention
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