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There's a certain type of trading chart which you must use it will tell you so
much more about the future direction of a stock's price ,check it out!
There's a certain type of chart which you must use when you're looking at
penny stocks or any kind of stock for that matter what will you give you so many
more clues about future direction of the stock's price that will tell you when to buy
or sell just based on the patterns which appear in the chart. Please subscribe to
this channel so that you can follow along with us we're going to tell you more videos
about this type of thing but also about making money from penny stocks.
Please give us some comments in the comment field below this video will get
back to you right away. Thank you so much. So lets get right into it: The type of
trading chart which you must use. Most people use conventional charts like the
open, high- low, closed chart or the straight line chart. You need to use candlestick
charts. This is going to tell you so much more and I'll talk you through it, I'll walk
you through exactly how this works. You're going to see as we talk here how
much more effective this type of chart will be for your trading decisions from
now on. What I always like to do is use free online web portals which everyone
has access to. That way we can all make sure we're on the same page and that
everybody can follow along and understand how to do this stuff.
Depending on which tools you use and who your broker is this is also customizable
feature. These charts are available all over the place but I'll use a free
common website just for the purposes of this example. So if you go to Bigcharts.com
and you put in the ticker symbol of a stock you want a review in this
example we will use Goldfield which is a stock which we selected on March 1st and you
put it in the ticker symbol instead of clicking basic chart click Advanced
chart. Then when you get there, if you scroll down a little bit you'll see you
that you have the options for the chart style. What you are gonna want to do is
change the chart styles probably set to the line change it to
candlestick change the chart size too big or large whichever one is the largest I forget and then
click draw chart. To get a more granular
what we'll do is change the time horizon of the chart from one year we'll do
it close from like three months or six months and I'll zoom in a little bit just to
show you how this works. Each candlestick each candle is made up of a body and wick
above and wick below also called the shadow above or below. The upper wick is going
to tell you the highest price that the stock traded at on that day
The lower wick will show you how low the stock price was during that day and intra day. During the day it traded at as low as the
bottom of the wick. Now the body is made up of where the stock price opened at
and where it closed at. If the price opened at a certain level and then closed at a
higher price
the body of the candlestick is empty.
If the stock opened at a certain price and then by the end of the day it closed at a certain price that was lower then the
candlesticks body's is full ok!!. So follow along here because I'm getting to the good part. So you can see
here this stock I will give you a couple of examples zoom in on this chart so that you can see. The stock
opened here and then it
traded as low as this and then traded as high as that and then when it closed it closed
here so therefore the candlestick is empty because it
closed higher than it opened. Now I'll give you another example where the stock closed
lower there then where it opened. So it opened here
traded as high as this, traded as low as that and then by the time it closed it
closed here and so the candlestick is actually full. So you know that it was a
negative day on the day. Now
candlestick charts have so many different indicators and patterns that will
show you this future price direction of the stock that it becomes such a powerful
tool everybody must use candlestick charts there is so much more benefit from them.
Candlestick charts originated in
Japan so you're going to hear a lot of different indicators or setups such
as Harami or Doji there is also given the length of the shadows can tell you something
about the future of the stock and about investor psychology. So we're gonna have a whole
bunch of videos
teaching you all of these different setups and patterns that you're gonna see and what
they mean. Typically candlestick chart can apply when the trend of the stock is
going to reverse. When share or when stocks are trading sideways candlestick
patterns or any kind of technical analysis is much less effective
especially with penny stocks, however what you want to do is when the stock is in a
certain trend the candlestick patterns are definitely going to show you when the
trend is going to reverse and the stock will start to lead in a different direction. So all of that's coming up
in our future videos so that's why its so important that you subscribe. If you
subscribe to this channel then everything will be good for the rest of
time and if you have any comments or questions please add them to the comment
fields immediately below this video I really do hope this stuff is helping. You
guys are awesome and we're gonna have lots more videos coming up that are
going to tell you
specific things to look for in the candlestick charts that are going to
help you become a better investor in penny stocks. Thanks so much!