What is exactly is a pincher?

[Mr. Halsey]

What is exactly is a pincher?
And how do you pick one out.

[Dzielak51]

thats a good question, anybody here know?

[Mr. Halsey]

ha, i thought you would be the go to guy?

[Dzielak51]

ha, i thought you would be the go to guy?

lol, i was just messing with ya.

A "pincher" is when the PPO indicator and the ADX(14) indicator come together tightly like a pinch.

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[Mr. Halsey]

the closer the better?

[Dzielak51]

Yep.  The farther apart they start, the better also.      There is alot of pinchers that "slowly" come together and "stay: in a pinch for a way.  They never really move much.   But if the PPO and ADX lines start far apart and then come together sharply then there is a bigger chance for a bigger rebound.

[tu]

For learning sake, would you say that the major indexes like the Dow Jones and S&P are perfect examples of  Pinchers in action around the July 14th area?

BB

[Vegas]

For learning sake, would you say that the major indexes like the Dow Jones and S&P are perfect examples of  Pinchers in action around the July 14th area?

BB

Yep... 

http://stockcharts.com/h-sc/ui?s=dji&p=D&b=7&g=0&id=p34236631034

[tu]

So, does this very obvious and strong pincher pattern in the DOW mean a half decent rally of a few months could possibly be on the way?

Also, can the same directional patterns that are not so obvious nor extreme be used to profit by it being an indication of a short term - short covering rally?

[tu]

Also, when the major indices such as the DOW and the sector indices that the penny stocks are in are in an uptrend, do you notice more upward strength for trading in the short and long term rallys. 

BB

[Vegas]

So, does this very obvious and strong pincher pattern in the DOW mean a half decent rally of a few months could possibly be on the way?

Also, can the same directional patterns that are not so obvious nor extreme be used to profit by it being an indication of a short term - short covering rally?

From my limited experience with pinchers, they do not seem to be an indicator of anything related to a long term rally... They generally seem to represent more of a short quick bounce or short term rebound followed by a leveling off or drop... I do not see them as representing anything long term...

Also, the trends in the dow are a totally different ballgame then they are with an individual pennystock...

[tu]

Thanks again Vegas for your reply.

I guess I should have been a little more specific -My meaning of long term, especially with the type of stocks we're tracking, as in a few weeks to a month. Short term as in a couple days to a week.

Regarding the major indices, -  I've noticed many traders tracking them along with the sector indices and the leading companies in these sectors, such as the fertilizer leading company, - Potash Corporation - POT.TO 

Not knowing quite what I was doing, I bought some shares in what they call a junior company called POTASH NORTH CORP... PON.V

This was one of the picks I saw on BNN  on TV...  Two mega-rich venture capitalist billionaires - Lukas Lundin and Robert Friedland are backing this company.

With potash being the leader on the TSE, and Potash Corp doing so well, I thought that maybe this junior with the strong backing would follow with the positive pressure.

From the technical aspect, I thought that the stock was making a flag formation attached to the pole with the diminishing volume that seemed common in corrective moves when stocks get ready to move up again.

If I would have been using the indicators that DOC uses and the knowledge that I'm acquiring here, I wouldn't have bought in... at least not yet.

Also seeing the negative pressure in the TSE  and and the overbought status indicated in charts for POT.TO  would have prevented my jumping in at that time.

It appears that there might be a slight rally in the indices with the TSE soon to follow. Also, Potash Corp. appears to soon make another rise... according to the charts.javascript:void(0);
Undecided

This is what I was trying to say about the correlation between the major indices and sector indices and their potential affects on... even the tiny stocks we're following.

So, if all signs are go in a specific sector, will our tiny stocks also have some positive momentum.

And of course with the psychological aspect that we feel we did the right thing.

And again, thanks for showing me what a pincher formation was, is, will be javascript:void(0);
Huh