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.
- Cover
- Welcome to the Book
- All About Penny Stocks
- 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
- Penny Stock Case Studies
- Secrets of the Insiders
- Information Sources
- Questions and Answers
- Bonus Features
- Appendix
