Penny Stocks

PENNY STOCK CHARTS

Candlesticks E-Book

Knowing how to read penny stock charts the most important part of trading penny stocks. Penny stock trading is risky so stick to the charts because the charts don’t lie.

The penny stock sector is filled with manipulators and pumpers. Hence the risk in trading them. Penny stocks are also attractive to traders, especially new ones. They’re cheap to buy and promise big rewards.

In this case, reading the charts before placing as trade is really important. You may hear people say the charts don’t matter. That is unequivocally not true. Read our post on how to read stock charts for beginners.

PENNY STOCK CHARTS

The importance of penny stock charts is in the patterns and the technicals. The market is a tug of war between buyers and sellers. This war forms candlesticks patterns.

These patterns form support and resistance along with the individual candlesticks. Each candlestick by itself also tells a story. Hence the importance of knowing candlesticks.

Candlesticks are the foundation of trading. Without them, technical indicators don’t mean anything. Learning how to read candlesticks and patterns will save you from the manipulators in the penny stock game.

A penny stock is defined as any stock $5 and under. Although a lot of people think of them cheaper than that. The penny stock charts of the larger dollar amounts are probably going to be the easiest to read.

Penny Stock Charts

PENNY STOCK CHARTS – CANDLESTICKS

Penny stock charts are made up of candlesticks. Each candlestick tells a story as well as form support and resistance. Bullish candlesticks and bearish candlesticks are easy to understand. Price is going up or going down.

What about doji candlesticks? Those show indecision. There’s also different kinds of doji candles that can give you different information. If you saw a doji forming on the daily chart of a penny stock, how would you trade it?

The real bodies and wicks of candlesticks form key levels of support and resistance. Support and resistance is another foundational aspect of trading.

They are levels every single trader pays attention to. If someone is telling you it doesn’t matter in penny stocks, you should take a good hard look as to why they’re saying that.

PENNY STOCK CHARTS – THE PATTERNS

Candlesticks group together to form patterns. Patterns give direction, whether continuation for reversal. For instance, someone is telling you to buy XYZ stock because it’s going to the moon but there are clear head and shoulders patterns.

That is known as an F you pattern and for good reason. You’re probably about to lose your money if you take that trade. Patterns are a safe guard against pumpers and manipulators.

Penny stock trading strategies should include trading patterns. The charts don’t lie. Whenever someone tells you a stock is going to the moon, look at the charts.

Who wouldn’t want to get on the ground floor of something big and make a ton of money? Everyone would but how realistic is it? Not very.

Trade the patterns and you’ll save your brokerage account. Take our candlesticks charting course to learn how to read candles and patterns.

Penny Stock Charts
Here is a penny stock chart. Look at how garbage it is. How can you trade that? There aren’t any clearly defined patterns that would be easy to trade. The one minute chart is terrible but this is a stock that has people saying is going to go to the moon. There has been some buzz that this stock is about to take off. Although that buzz has been there sine last year and look what it’s done.

PENNY STOCK CHARTS – TECHNICAL ANALYSIS

You can use technical analysis to trade penny stock charts in conjunction with candlesticks and patterns. Moving average crossovers can give you buy and sell signals as well as acting as support and resistance.

Moving average lines provide equilibrium t0 stocks. If price moves away from them, they’re going to come back. Use them as guides to get into a trade. The closer price is to the moving average at the entry of a trade, the better.

Everything is used as a tool to help you make the best trades. Sometimes trades go against you. However, using the tools at your disposal keep you from making trades where you’ve guessed; as well as going off the recommendation of another person.

PENNY STOCK CHARTS – WHY THE CHARTS MATTER

Everything else you’ve read up to this point proves why penny stock charts matter. The sector is manipulated and pumped. Never listen to the success story of someone else.

In the penny stock sector there are a lot of success stories of how people became millionaires. That may be true but that is the exception not the norm.

If you get into penny stock trading to get rich quick then you’re probably going to fail. Trading is hard and takes time, practice and stock market training. Penny stock charts are there to be your guide.

Then you’re not getting caught up in the success story of someone else. You’re trading smart and that is a success story in and of itself.

 

penny stock charts

CHOOSE A COURSE THAT WORKS BEST FOR YOU

Learn about the essentials of candlesticks patterns and how to trade them
CANDLESTICKS

Learn about advanced candlesticks and how to trade candlestick reversal patterns
CHARTING

Fundamentals of stock trading 
TRADING COURSE

Simple day trading strategies on how to become a consistent and profitable day trader
DAY TRADING

Advanced day trading techniques
MOMENTUM TRADING

Basics of swing trading and also some advanced swing trading strategies
SWING TRADING

Basic and advanced options trading strategies and how to buy and sell options contracts
OPTIONS TRADING

Set up your virtual trading platform in ThinkorSwim
THINKORSWIM

Set up your virtual trading platform in Interactive Brokers
INTERACTIVE BROKERS

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