I think you might by myopic on the chart. The chart "read" needs to be put into context. By itself, it tends to allow any interpretation that you can justify. And there are a lot. I would suggest when you see a pattern of interest, go back and find it 2 or 3 times and see how it behaves. If it looks random check some more. If it looks consistent, then look some more. On context, understand that instruments have many categories of behavior. That is why people say penny stocks are a trap. The pattern on a large or mega cap, do not translate consistently to penny stocks. It is typical someone see a mega cap doing xyz and then see a cheaper stock doing the same and think it will apply. Likewise different time frames' patterns do not always translate either. Lastly, you have to filter out noise. Noise will grind an otherwise sound strategy down to nothing or a loss. Best of luck.
easymon has a valid point...penny stocks are a breeding ground for manipulation...learn to get on the other side of the obvious.
Chartwise, highs indicated outburst of freaky movement, this movement to sell short of allowed. Seldom after this pattern shows sideways action to buy. I would look for long term, weeklies, trending up then smaller timeframe for buys
i see every day these stocks drop and rebound literally every single day And try to trade one time and manage to pick the one that doesnt rebound... I dont even look at any stocks above 5 dollars so im not really translating any moves from normal stocks to penny stocks I like penny stocks i think there is potential thats why i want to learn how to trade them And im well aware of manipulation and the fact that i will get my ass handed to me many times while im learning
I was trying to get in on a possible rebound for a quick trade. this was not planned as a long trade I looked at the market it was green yesterday throufhout the day and at closing And in the past few weeks first green day usually held up for few days after but this time it didnt
This is a good example those learning to read charts. There was a large fall followed by a tight range. You have to look at the whole picture because that fall is firmly in the minds of your fellow traders and will effect their thinking. The general tendency is for the market to continue in the same direction after a time. It's easy to think that the move is over because it went flat, but its the time to find a price where you want to go short. It went flat most likely because nobody wants to short a market right after a fall. You wait for the market to go higher so you get a better price. As it becomes more likely that it's not going higher a few brave souls will "sell it in the hole" as the saying goes. Then everyone piles in. As you gain more screen time you will see this quite often. The danger is that you will go looking for this situation and you will see it when it's not there. Good luck.
One more for old time sake:- https://www.elitetrader.com/et/thre...schemes-that-spanned-three-continents.366539/
until recently i had good results with dpw it was my most profitable stock. Until the end of last year. I keep trying to trade it now but keep getting in at the wrong times now. But overall i do want to learn to trade penny stocks At least until i grow my account more. I tried trading more expensive stocks 15-30 dollars and ended up losing more per trade because a penny stock under a dollar can only go down few cents per share A 30 dollar stock can cost me 29 dollar loss per share.look at netflix. Thats more than 100 per share loss