Pinch Play Indicator for ThinkorSwim


2019 Donor
Hey everyone! I know a lot of us like reversal indicators and arrows on the Price chart. I was late-night diving into the ThinkScript_Cloud and found this accurate PinchPlay indicator by a guy named Dilbert. Please see his explanation below.

# A pinch play is essentially a PPO (or MACD) with an ADX that is
# squeezing together. This would be when the PPO drops and bottoms
# out while at the same time the ADX rises and tops out. If you
# configure the PPO above the ADX in lower subgraph the plots appear
# to pinch together when a long signal occurs. It is a wonderful play
# with good results of moves back to the 20 DMA. It displays arrows
# on the price plot when conditions are met.
# This study was written using the logic in the RSI divergence study
# posted recently. The logic for the short version is works in
# progress.
# 08.31.2015 - Dilbert - add short logic
# The logic for the long pinch play is fine. However I had trouble
# getting the logic for the short pinch to work.
# 09.05.2015 - Dilbert - Removed short logic, so that this can be scanned for long pinch
# When the short logic was added it made the study too complex to run
# scan queries. In order to run a scan query for a long trade, reference
# this study in the scanner.
# PinchPlay()."PinchUp" is true
# Note that the name of this study is "PinchPlay".

This is what it looks like. It "misses" sometimes, but it's never too far off. Setting a 25% stop loss for options might be enough to consistently generate profits in the long run. Works on all timeframes. Please test it and give feedback.
Does anybody think they can add "short logic" into this for people not interested in scanning? Unless you are using a D or W timeframe, scanning is a waste of time for this, in my opinion. By the time your scan shows results, the stocks that just signaled will be mid-move for intraday timeframes. I think this indicator could give good sell signals based on how accurate these buys are.
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Well-known member
Dilbert knows his stuff. If he took the Short out, it was for a good reason.

However, that shouldn't stop other coders from taking on a challenge!
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New member
I’ve been searching long and hard for a scanner that will find the PPO ADX pinch. Does anybody know how this can be accomplished


look at the right hand side, top of TOS window you will find Setup, click it and you will find Open shared item

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