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Re: dgsion post# 20467

Sunday, 06/06/2010 2:33:07 AM

Sunday, June 06, 2010 2:33:07 AM

Post# of 52591
I will read you a quote from "Technical Analysis Explained 4th edition by Martin Pring", and IMO, one of the best books on the subject.

"These basic principles of technical analysis apply to all securities and time frames from 20-minute to 20-year trends."

ALL SECUTIRIES
I would rule out the subpenny low floaters where $50K will send them up 300% and then back down. The market participants are few and there are more distortions as 1-5 persons with a deep pockets can run the show. But to answer your original question the big player pennies do apply.

TIME FRAMES
I would break this statement down further and state 1-5 minute charts for daytrading and the signals are all the same. A 1 minute chart, 5 minute, 60 minute, day chart, it all depends on they length of time you want to hold it. I usually use 60 min charts for most penny stocks to look at 3-4 day trends. A NYSE stock which generally has longer swings like weeks a Day chart may work better.

So it doesn't matter what signal you want to use, volume rsi, macd, fibonicci retracements or even elliot wave theory. These are characteristics of the emotions fear and greed being of thousands of people, and the rules apply over all time frames, all securities.

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