Latest US Penny Stocks Trading Strategies for trading and investing. These strategies are not same compare to other trading strategies, in this topic we are gonna talk about big players or big whales importance in financial markets and we will also discuss that how we can use their footprints & chart patterns as a weapoin in our trading,investing etc. US penny stocks trading strategies are as follows:
Big Trader’s Footprints: The understanding of big players or big whales does become so much important for us whenever we start to think about making consistent amount of money by following a market trend. Big players or the big whales are those people who move the market in a big way or the movement of whole market trend depend upon the big players. like big banks, big investors, big commercial companies etc. The market chart patterns, movements all depend upon the big whales buying and selling decisions because they does work with big massive money. Lets take an example of ZNGA us penny stock weekly chart.
As above shown in the chart of ZNGA us penny stock a big fall or a big pump can be a sign of big player, this is a dump so during this kind of downfall you have to keep in mind that a point from where big player is selling that point become important for us and we have to also check that till how long he is selling. For example above in the chart you can see that till $2 level he has sold. In simple words just concentrate on the big single line from its starting to its ending point (lower low). That would be a zone of big player as shown in diagram above. Now lets see the image 2 something special is there to show you.
so this is the second image as shown above. See what happened market was trying to recovering from the lower low area which was $2, market went upto $6 almost then again came back down. Why? Because $2 to $16 is a zone of big player, as I had said they have power and they can smash the price back anytime from up there too. Here if you will try to add trendline according to that it will be a buy sign, so many will say this is a breakout and they will place the buy orders. As the market goes up so many people start to invest in, but we mostly skip they big players, the result is in front of you see what happend how they smashed the price back to $2 even below of $2.
- How to use big whale footprints in US Penny Stocks as a strategy?
There are so many ways to do trade with big whales foot prints if once you have a good experience to judge the market conditions properly trading will become more profitable for you. First of all we have to check that market will reverse or again would come back down after a HH and HL sequence, keep in mind that after that breakout if market is not getting good support from below it means that there is probability of downtrend once again. This type of pattern mostly arises during a downtrend situation.
On the other hand if we are getting a good support after the breakout from the market means market price can bounce and can go above after that. For this we have to use the support and resistance based theory for our us pennys stocks trading analysis. Any financial market’s does not contain only a buy or a sell side so that’s why some time we can be wrong also. But if you are looking for consistent gains this pattern is surely made for you guys.
- Key points to remember during following the big player footprints?
- A long series of rapid bull and bear candlesticks can be the sign of big player.
- Pay attention on High Higher, Higher Low and Lower high and Lower sequence.
- Avoid counter trading is possible go with the market trend.
- Keep patience and wait for the right time regarding your entry.
- Technical anlaysis required, follow proper Support and Resistance analysis.