Chart patterns for penny stocks,futures trading platform,fx brokers accepting us clients,forex swap rates table - How to DIY

12.01.2014 admin
Designed as a place for new companies to get a start, the sad truth is that the vast majority of the nearly 3,500 juniors listed on the Over-the-Counter Bulletin Board (OTCBB) will never make it onto the big boards.
Most penny stocks have neither profits nor revenues, but traders can learn how to pick out those that have the highest likelihood of survival. Here is a list of conditions that can be used as a starting point when searching the universe of more than 3,000 OTCBB stocks. Liquidity allows traders to quickly enter and exit a trade, so look for stocks trading a minimum average daily volume of 100,000 shares. Go after stocks that are currently moving higher, so be on the lookout for those with a positive three- and 10-week price delta in which the nine-day simple moving average (SMA) is greater than the 18-day SMA, which suggests an uptrend.
Fundamentally, we want stocks that are not bleeding cash, so exclude companies with negative earnings per share (EPS) or negative earnings growth rates.
To ensure that you don't get caught with a one-hit wonder or stocks that have a single good day or swing, it is wise to perform the search over an extended period, such as over a five-day period. Next, stocks in which short interest as a percentage of the float is 5% or higher could mean trouble ahead. Three Penny Winners Here are three examples of stock that came up in our scan and how the trades developed over time. SilveradoThe first example is Silverado (SLGLF) in Figure 1, which demonstrates a bullish basing pattern.
This is an example of a stock in the consolidation phase, when a stock is building a foundation from which to move higher.
Figure 1 - Daily chart of Silverado Gold showing bullish cup and handle chart pattern in the final stages (blue curved line). Figure 2 - Stock chart showing the bullish rounding bottom chart pattern, which shows stock consolidation. FDMLQ met our scan conditions (green arrow) and remained a long candidate until it broke down from a consolidation flag pattern (horizontal green line) after which it broke below the 50-day moving average and rounding pattern, both of which are bearish. Figure 3 - Patch International chart showing buy (green arrow) and sell (red arrows) signals. A Word on Stock ScreenersThere are a number of free and subscription-based stock screeners out there. Penny ProofInvesting in penny stocks is undoubtedly more risky than large and mid caps, but by employing a system to find the best candidates, investors can greatly increase their odds of winning the game. While there are never any guarantees for success, the more technical and fundamental factors in your favor, the greater the chance of making money. For further reading, check out How To Evaluate A Micro-Cap Company, Spotting Sharks Among Penny Stocks and The Lowdown On Penny Stocks. If you’re just starting out as a trader, the sheer number of technical analysis patterns can be downright overwhelming.


Today, I’d like to show you four simple chart patterns that could help you find your next profitable trade in 2012. At their most simple construction, patterns are just different arrangements of support, resistance, and trend lines. First up is the ascending triangle, a bullish pattern that’s formed by a horizontal resistance level to the upside, and uptrending support below shares. In both cases, the trade signal comes when shares push through the neckline (sometimes called “shoulder level”) in the chart above.
Finally, we’ll look at the double top; as the name implies, it’s a topping pattern (thus it’s bearish). Not surprisingly, a pattern called a double bottom is the bullish opposite of the double top. While we’re hardly taking an exhaustive look at all of the potential patterns that you may encounter in the market, these four patterns provide a good sample of how the building blocks of support, resistance, and trend create actionable patterns.
Jonas Elmerraji, CMT, is the co-editor of STORM Signals and Penny Stock Fortunes, and a contributor to Agora Financial’s Trend Playbook.
Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation. The Penny Sleuth Penny stocks, options, and emerging market plays offer some of the best gain potential in the investment world.
Using technical analysis is not a foolproof method because of the low liquidity often associated with penny stocks, so here are a few bullish ideas from the Trending123 Pattern Scan powered by Recognia to get your research started. The Double Bottom pattern forms during a downtrend as the price reaches two distinct lows at roughly the same price level. Read on as we cover some penny stocks that appear to have good prospects and show you how we found them. The other half is finding the right tools (like stock screeners) to help you scan thousands of stocks. Stocks that come up frequently over the period should be the ones in which you take the most interest. However, very high short interest often portends a short squeeze (price is moving higher as those who sold the stock short betting it would all rush to cover) and this generally pushes price even higher.
It had been the target of a potential short squeeze and had been included in the SEC's Regulation Short (Reg SHO) threshold list of stocks for which shares in the company were classified as "failed to deliver". As you can see from the chart below, the cup and handle formation was used by traders to illustrate that the momentum was shifting to the bulls' side and that it may be a good candidate for a move higher. If the stock breaks more than 5% below the straight cup, if long, a sell would be prudent; if not, hold until it breaks back above the trendline. An important caveat is that no matter how good a system for finding stocks, it's essential to always use a stop loss.


With literally hundreds of patterns to look for anytime you analyze a chart, it’s no surprise that new technical traders often suffer from analysis paralysis when they’re just starting out. When it comes to chart patterns, it’s absolutely true that rote memorization will only get you so far. While I won’t get into too much detail over how those individual building blocks work, you should be able to see a lot in common with the four patterns I’m about to show you. It’s a bearish pattern that’s identified by a peak (the head), with smaller peaks on each side (the shoulders). By keeping these four patterns in mind the next time you look at a chart, you’ll be better able to spot other, more unconventional setups than traders who resort to rote memorization. The Penny Sleuth features unbiased and independent analysis on penny stocks, OTCBB, options and more!
Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction.
Volume reflects a weakening of the downward pressure, tending to diminish as the pattern forms, with some pickup at each low, less on the second low. The red arrow is a sell signal, which is formed after the stock has started to show weakness in its prevailing trend. As well as coming up in our scan a number of times during the week, it has a relative value based on analysts' estimates above its stock price, which is good news. As shown in Figure 3, after consolidating after a drop, it began to rise, demonstrating an uptrend, which it held for three months. The challenge comes in finding a screen that does an adequate job of merging technical and fundamental criteria.
They’re an opportunity for a stock to bleed off some volatility and for traders to think about their next moves.
These patterns are expected to play out in the intermediate term (six weeks to nine months). Then well before the triangle reaches its apex, the price breaks above the upper trendline with a noticeable increase in volume, confirming this bullish pattern as a reversal of the prior downtrend. Unlike the other patterns we’ve looked at, this setup doesn’t have any directional bias until it triggers. It is not uncommon to have a difficult time finding information or credible research on many penny stocks due to their lack of liquidity and sparse following from the bigger market players.



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