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OldFart's reverse pinch plays

post #1 of 33
Thread Starter 

**This is a theory in the works. Do not play with real cash, or you may get burned**

I started playing regular pinch plays a while ago ( gotta give kudos to Rock Sexton the Pinch King ).

What is a pinch play? In a regular pinch play, the PPO trends along with the stock price, but the ADX goes away from the stock price, and when it crashes, the PPO & ADX pinch together showing a possible oversold condition.

 

Stack your charts in the following order:

Stock Price

PPO

ADX

When the stock gets oversold, the PPO & ADX pinch together showing you an entry into a bullish position: 

 

1.png

 

 

I'm more of an options trader than a stock trader, and every options trader knows that a stock falls faster than it goes up, so I thought..what makes a pinch...what causes it to crash to begin with, and can I get into put options prior to it dropping like a dead duck during hunting season?

In a healthy stock, the PPO & ADX trend along with the stock price: 

2.png 

 

A reverse pinch play stack your charts in the following order:

Stock Price

ADX

PPO

This will show you when a reverse pinch is starting, and a possible play to the downside: 

3.png

post #2 of 33

Thanks Old Fart. I deal through Scottrade and I'll see if it's possible to set up a chart with the PPO, ADX and a stock. Veeery interesting.

post #3 of 33

OK, you've got 3 charts stacked, right? I initially thought it was one chart. bs_help.gif

post #4 of 33

OldFart.. you have your own thread finally!?!?!?

 

mind = blown

 

Seriously though..I've been dying to see someone create a pinch thread for option plays...hopefully you'll have some in here. Kudos.

post #5 of 33
Thread Starter 

BobK - the charts are separate from eachother....not multiple charts...LOL. You should be able to stack indicators in Scottrade.

 

07 - Thanks dude. Hopefully, I can get the timing down so I can finally re-stock my options account...

post #6 of 33
Thread Starter 

I'm a little slow in here....I have to work fir a living then try to find some interesting plays....gimme a break....I'll scan this weekend, I plan on re-stocking my options account with some funds to play for real, so this may turn into OldFarts retirement thread.....yeah right.

post #7 of 33
Thread Starter 

QQQ starting to look bearish....

 

qqq.jpg

post #8 of 33

Nice to see your own thread old fart...

Finally:)

 

post #9 of 33
Thread Starter 

another one looking bearish...SPY

 

spy.jpg

post #10 of 33
Thread Starter 


thanks...been a while since I saw you...hope things are good!
 

Quote:
Originally Posted by binks View Post

Nice to see your own thread old fart...

Finally:)

 



 

post #11 of 33
Thread Starter 

so....decided to play "virtual trade" on SPY & QQQ's. I also made sure that I picked them up at "high of the day to emulate a trader who works for a living and can't day trade ( which I am right now ).

 

Picked up SPY JUL 129 puts for 2.640 x 5 = $1320

 

Picked up QQQ JUL 55 puts for 1.570 x 5 = $785

 

We shall see what happens.....

 

spy.pngqqq.png

post #12 of 33

QQQ trying to learn how to play this

post #13 of 33
Thread Starter 


Theory in the works.....if you're familiar with pinch plays, then you should understand this pretty well....ADX must move away from the price action and the PPO must move with the price action in order to have a "pinch" when the dreaded drop occurs.....I am sure you figured this out. You're no newbie to trading...LOL.
 

Quote:
Originally Posted by Royal View Post

QQQ trying to learn how to play this



 

post #14 of 33
Thread Starter 

Picked up SPY JUL 129 puts for 2.640 x 5 = $1320

up to $3.55 now = $1775

 

 

Picked up QQQ JUL 55 puts for 1.570 x 5 = $785

down to $1.5 now = $750

 

 

still in both 

post #15 of 33
Thread Starter 

well....instead of sticking around like Opra at a buffet, I shoulld have gotten out yesterday.....should be another nice drop next week.

post #16 of 33
Thread Starter 

FCX & X showing reverse pinch on hourly charts...

post #17 of 33
Thread Starter 

should have seen it coming on the daily chart....

 

spy.jpg

post #18 of 33
Thread Starter 

XOM looking bearish

 

xom.jpg

post #19 of 33
Thread Starter 

proving once again oldfart's reverse pinch plays work...even on forex:

 

eur-usd.jpg

post #20 of 33
Thread Starter 



 

Quote:
Originally Posted by OldFart View Post

XOM looking bearish

 

xom.jpg



and one more time:
 

xom.jpg

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