- Welcome to the Book
- Introduction to Penny Stocks
- Foreword by Peter Leeds
- Welcome Letter from Peter Leeds
- Overview of Penny Stocks
- Peter Leeds Credentials
- About Understanding Penny Stocks
- All About Penny Stocks
- About Penny Stocks
- What Are Penny Stocks?
- Big Stocks vs. Penny Stocks I
- Big Stocks vs. Penny Stocks II
- Big Stocks vs. Penny Stocks III
- Why Trade Penny Stocks?
- Where Do Penny Stocks Trade?
- Getting Started in Penny Stocks
- Learning The Ropes
- Paper Trading
- Trading Stocks
- Buying Penny Stocks
- Selling Penny Stocks
- Cancelling / Changing Open Trade Orders
- Monitoring Your Stocks and Trade Orders
- Getting a Good Stock Broker
- Where to Research Stock Brokers
- How to Choose the Winners
- Picking Penny Stocks
- Picking Your Own Explosive Penny Stocks
- Different Research and Analysis Schools of Thought
- Leeds Analysis
- Leeds Analysis I - Fundamentals
- Leeds Analysis II - Fundamentals
- Leeds Analysis III - Fundamentals
- Leeds Analysis IV - Fundamentals
- Secondary Fundamental Considerations
- Leeds Analysis V - Technicals
- Leeds Analysis VI - Technicals
- Leeds Analysis VII - Technicals
- Leeds Analysis VIII - Technicals
- Leeds Analysis IX - Technicals
- Leeds Analysis X - Technicals
- Research Preparation
- Short List Approach
- Over-Analysis
- Advanced Strategies
- Advanced Penny Stock Strategies
- Short-Term Trading
- Volatility Play Investing I
- Volatility Play Investing II
- Advanced Fundamental Analysis
- Advanced Technical Analysis
- Penny Stock Trading Windows
- Penny Stock Day Trading
- Hedging Penny Stocks
- Averaging Down
- Short Selling Penny Stock
- Warrants, Options, Derivatives, and Rights
- Penny Stock Case Studies
- Case Studies
- The Rise and Fall of Enron
- The Bre-X Debacle
- Secrets of the Insiders
- Penny Stock Insider Secrets
- Extreme Research
- Tips of the Insiders
- Limiting Losses
- Information Sources
- Information Sources
- Media Bites
- Watch Out for These Dangers
- Benefits to Look for in Penny Stock Picking Services
- Do Your Own Research
- Our Picks for High-Quality Web Sites
- The New Sheriff in Town
- Old Penny Stock Certificates
- Penny Stock Q+A
- Questions and Answers
- Beginner Level Questions
- Intermediate Level Questions
- Advanced Level Questions
- Miscellaneous Questions
- Bonus Features
- Bonus Features
- Penny Stock Stats Pack
- Ten Trading Myths
- Financial Statements
- Halts and Delistings
- Penny Stock Trading Considerations
- Past Penny Stock Trends
- Penny Stock Prophecies
- Appendix
- Glossary of Terms Used
- Disclaimer / Disclosure
- Contact Information
- Media
- Other Sites of Interest
How to Choose the WinnersUnderstanding Penny Stocks
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Leeds Analysis VIII - Technicals
Resistance Levels
This is precisely the opposite of support levels, and is brought on by an increase in selling activity at a certain price. Resistance levels can be broken through, but they are most effectively used as a way of taking profits from a position for short-term traders.
In many cases, once a trader has identified the support and resistance levels (if any), they can profit again and again by accumulating just above the lower threshold and selling just below the upper threshold. I call this Volatility Play Investing, and detail it in Chapter Four.
General Range
By drawing a couple of quick lines on a trading chart, you can usually find the general range that a penny stock trades between. This does not mean that past performance will be continued. However, for some penny stocks it is possible to see that the shares have bounced mainly between an upper and lower price, independent of support and resistance levels.
This range, while it can change at any time, can often serve as a way of knowing what to expect from the underlying penny stock.
