Anyone Else Realise Chart Reading is Failing?
Ive analyzed many charts lately and stock performance based on them. things seem to have changed. Meaning stocks dont trade against charts like they did in the past. Before a stock would bounce off say 50dma or barely touch 30rsi and turn back up for a nice bounce swing. These days stocks are sinking through 200 DMAs or sub 30 rsi's and not bouncing, even though good fundamentals exist in the company. Why is this?
I think MMs have noticed this trend of Penny Stock investors becoming more technical savy traders or chartists versus speculators, news players, momentum traders or cheap price buyers. So they are bending the stocks out of shape more than usual to confuse investors who have found the technical route to investing in pennystocks/otc's. What kind of bending? Driving stocks under 200dma's...below 30rsi's, stopping runs after a few white candles and 50 rsi, when in the past 2 or 3 white candles and a 50+rsi meant buy buy buy. Those signals arent materialising into runs anymore. I understand the markets have gone to shits lately but I think there is more to it.
Personally I think Ihub investors rely too much on technicals on their investment desicions, which have slowed down the ammount of trades going in and out of otc's, because people like to wait for the technicals to "look good." Which is smart but it has totally changed the terrain of the otc market. MMs make money off stocks moving up big believe it or not, and they make money of them moving down big. Either way they like volatility and volume, and this super cautious "technicals look good" type trading is taking that out. So It seems as MMs are shaking up that system people are relying on and trying to herd us back into more general speculative investment strategies, through making people realise relying on technicals wont save you.
GLTA and Happy Investing!
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