Hi friends,First the preliminaries:This is a post solely on...

Hi friends,

First the preliminaries:

This is a post solely on technical analysis and there is zero fundamental content in this post. If you are a fundamental investor or long term position holder, and do not wish to waste time discussing charts and patterns, please refrain from reading further and do skip the rest of the post as we are discussing charts and short term trading. Thank you.

Now on to the discussion:

Some penny stocks which are basically resource stocks do display some recurrent and repeatable price patterns before they start to undergo some bouts of accumulation and price increase over a few hours to days. This makes them good candidates for short term trading ( we are NOT talking about long term investment holding for periods of years to decades ). Such price patterns are clearly seen even at the lower time frame levels such as in the 60 min or hourly charts.

Let me show you an example of a 60 min chart for a penny resource stock called GDA. The recurrent price patterns appear as the hook-ups for the Index coloured bands, and also as the oversold hook-ups in a sensitive oscillator such as the Laguerre RSI.



Even as we speak, we are within the time window of such a repeatable recurrent price pattern for GDA, which makes it a possible candidate for a quick swing upwards. Generally, such penny stocks are affordable by most and tradeable in big volumes so that percentage-wise, profits can be reasonably satisfactory for the short term trader.

May the best prices be yours,

dascore