The Trader's Perspective

[Sendme]

OWCP I am going to throw in fractals (small arrows above candles) as one more indicator to use to confirm a buy signal. So I thought that I would post a chart that shows how I think that they will help to confirm a buy trigger.

In this case with the stock under $1 I am using a .02 price above a previous fractal after a noticeable divergence and a top trend line break as my indicators for a buy signal.

I am also looking at some of these as longer term holds as opposed to a quick scalp as long as stop losses are not broken.

I will also caution that these penny stocks often will have a 50% stop loss so it is best to get as many confirmations as possible within reason and allow for that potential loss when you buy. $500 buy in would be a %250 risk factor etc.




long term target


I admit that I probably pulled the trigger a bit too soon on this one. It looks like there will be a better entry at the gap fill with a better risk/reward at that point.

I would like to see the green trend line hold and break the blue one and then get a golden cross with the 50 and 200 MA