| Penny stocks have the potential of making huge | | | | 2. Asceding Triangles: |
| gains in a short span of time. But on the internet, it is | | | | Ascending triangles also mean a big breakout is about |
| very difficulty to separate hype from the fact as | | | | to take place on the upside soon. An ascending |
| you will find many unscrupulous penny stock | | | | triangle is formed when the resistance is horizontal |
| promoters trying to fuel their pump and dump scams. | | | | but the support is making higher and higher lows. |
| How do you separate hype from reality? | | | | Now, these ascending triangles are sometimes |
| Penny stocks or what you call small caps have been | | | | susceptible to failure, so when you spot an ascending |
| outperforming the mid cap and the large caps for the | | | | triangle only trade when the share price pushes |
| last many decades. So there should be no reason for | | | | above the resistance. |
| you to stay away from good penny stocks. You can | | | | 3. Pennant Continuation Patterns: |
| use the following four highly profitable penny stock | | | | This is a continuation pattern that means that the |
| chart patterns that can tell you when a penny stock | | | | share price is headed in the same direction as it was |
| is about to make a big move. | | | | going before the pennant started. A pennant is just |
| 1. The Gap Up: | | | | like an ascending triangle but with a downward sloping |
| This is the most effective chart pattern that can tell | | | | top. So when you spot it get ready for action. Just |
| when a stock is about to make a big move. With a | | | | as with the ascending triangles, wait for the price to |
| gap up, shares open with a price higher than the last | | | | break above the upper line before you make your |
| night's close. Now for this gap up to be really | | | | move. |
| effective, the company should have a news catalyst | | | | 4. Crossover Breakout: |
| and the stocks should gap up over the resistance | | | | This pattern combines a breakout with the bullish |
| level that has not been breached before. | | | | moving average crossover. |
| Now, this chart pattern is the most easy to spot. | | | | There are a few other chart patterns also that can |
| When it appears, it means that the stock is about to | | | | be used to predict when a stock is about to make a |
| make big gains in the next few days. Time is of | | | | big move. So, instead of believing in hype, simply look |
| essence as most of the gains after the gap up takes | | | | for these chart patterns and if you find that rest |
| place in just a matter of few days. So when you | | | | assured that something is about to happen! |
| spot this chart pattern, you need to act fast. | | | | |