Yesterday closed with a large red candle (known as a Marabuzo)...

Yesterday closed with a large red candle (known as a Marabuzo) that broke support at 0.061. In a trading situation (if bullish) this would be of concern especially if confirmed with high volume. With OBJ I am not concerned as I am a long term holder rather than a trader of this stock.

Looking back over the charts I notice the history of this stock is for buyers to push the price up then withdraw their bids, waiting for the impatience sellers to push the price down. When the sellers have dried up the buyers move back pushing the price up before once again withdrawing their bids waiting for the price to come back. I have no reason to doubt this pattern will continue while waiting for an announcement that will bring in new buyers that will take control of the price movement pushing it higher on volume.

I have notice some newbies go from stock to stock looking for that elusive trade. Often this is a good way to liquidate a trading account. This was initially my way of trading where I lost money. From this I leant to first become acquainted with a single stock. I paper traded this stock where I learnt to be in synch with the way the stock moves using price, volume, support, resistance, moving averages, trend lines, wedges, double or treble tops or bottoms, Stochastic, CCI and MACD to build a body of evidence before trading. I learnt the hard way to keep my trading indicators simple.

There is no single set of tools, technique or fixed system that will always give a clear signal for entry and exit points. The market is constantly changing and so does the way we read our indicators and this takes practice. Understand the market fundamentals, learn to read the news, become familiar with the technical’s. Investigate, explore, learn, and allow your personality to become the master of the behaviors you feel comfortable with.

Regards