Penny Stock Education

[Jason Bond]

no you can pick up breakouts off divergence. for example, an oversold scan with improving RSI or hammer candle might find a stock before it moves > confirmation is always key in this case and volume is usually the underlying issue or that lack of for that matter.

stocks that have broken out already might dip and make a pattern which are sometimes more reliable than a single indicator. remember, analyzing within an uptrend adds strength to what's happening - calling a reversal in a downtrend is a whole lot harder to predict.