Yep, lotsa folks don't go for PA trading. Mick's LCY chart... Some not averse to trading Price Action may like how many ways Mick's LCY chart is speaking to you. Hear it sing right here... https://www.elitetrader.com/et/threads/charts-for-no-reason.344272/page-21#post-5575843
Interesting thread. In my opinion trading penny stocks is like a lottery. You pick momentum stocks which went up 30%- 60% a day and buy them on market close (not day trading). For example NUTX made 58.42 % on 04/01/22 and made a huge move of 525 % the next day. Ok you will have some loosers which you could hold or sell but these big winners could compensate the loosing trades. You could speculate that the stocks which didn´t make big moves the next day or decline could explode some days laters. You have a lot of time. That´s the difference to swing trading options where time decay is your enemy.
Yes, there is logic in this for this reason. If a bit doubtful, let the stock trade throughout the day, if it doesn't collapse and near close actually still looking strong, this is usually enough confirmation to then get in. There are as well imo, plenty of part time traders working for the boss 9:00 to 5:00 who when they get home from work will place an order for the following day if they too believe it has merit. Day traders imo want to buy asap. My method I use, it pays to wait and watch its behaviour for signs of being legitimately a good longer term contender, sometimes waiting all day. One other thing, if you only have access to 20 minute delayed data, you can still operate this pennystock trading method, but it needs to be intraday minute data.
For sure, the best strategy I have for that is to focus on a setup that's on a longer timeframe to assure me that I'm not just wasting time, or I just walk away and do something else. LOL I think I just found some new indicators I can add looking at your image Yeah in a way penny-stocks could potentially be one of the most lucrative because you only need a certain number of stocks to really have a bull run to compensate any losses and the profits can be really huge in some cases. What do you trade if you don't mind me asking?
%% Good points\even though several data providers falsely print it that way. Another good reason to print your own charts......... Then for some reason most data providers falsely hide all the time C was penny stock[reverse split 10X C[citigroup] So C@ $52= really $5.20. I didnt buy it for his penny stock adventures; but An American Hedge Fund is a good read\Tim Sykes.
I'm interested to hear more but so as not to divert from Mick's fine thread, over here's a LCY chart with a couple of PA things on it. Which are you looking at? https://www.elitetrader.com/et/threads/charts-for-no-reason.344272/page-21#post-5575843
i´m trading stocks which show a breakout. The question is often should i buy them on market close or should i wait till the next day. What i noticed is that these stocks often build an inside day formation when they make a first move of 100% and beyond. Than the third day could be the best. But i ´m also trading options on higher priced stocks or etfs.
Lol, I meant the movie images you put on it, would make a great alert indicator As for indicators I think any volume indicator like up/down vol ratio I think would be very good for breakout stocks at this range. What do you guys think?