What often happens is the retail traders not willing to jump in the pre-market use the open to hit buy at market. If you are going long, the pre-market has its risk, but the open is not much safer. This is not easy because the volume is thin and spreads are large. When I say early, trading in the pre-market allows you to grab portions of the gains from the spike. Now, as a trader, you can jump on the bandwagon early. The bulk of the long move occurs in the pre-market. This is often the case with morning movers. Now in this example, the move was swift and didn’t provide much of an opportunity to jump on board. This sort of action is common in the pre-market. The stock was able to rally 100% in less time than an episode of Seinfeld, even with skipping commercials. This resulted in the stock shooting up 100% in twenty minutes. This is an image of CTRV after a big news release of a clinical study. If you have ever tried trading penny stocks on the open, you will see a pattern like the one below. Pre-Market Rise/Market Open Crash Pre-Market Rise Setup – Example 1 Now after giving this massive intro, let’s dive right into the 2 best day trading chart patterns. Honestly, the patterns between low volatility and high volatility OTCs are the same, it’s just that penny stocks can run to real extremes.Īt any rate, I decided to write this article because I know regardless of the risks, penny stocks are and will still be the darlings for some retail traders because of the possibility of quick wealth. I prefer to trade low volatility stocks which have more predictable price action. I was hesitant about even writing this article because I personally do not delve in the penny stock world.
So What to Do With These Penny Stock Chart Patterns?.
0 kommentar(er)
