Penny stocks don’t have fundamentals.
Most of these trashy companies don’t have revenue, earnings per share, or even a product…
They move on news, hype, volume, and short squeezes.
So the best way to pick stocks and plan trades is to use technical analysis.
I use it every day to plan my trades…
Like my trading plan for InVivo Therapeutics Holdings Corp. (NASDAQ: NVIV) yesterday before it skyrocketed 370%!
So today I’m sharing three technical analysis tools that can help you navigate the market like a pro.
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Master Trading With These 3 Essential Technical Indicators
Trading can feel overwhelming with all the fancy indicators out there…
Too many traders clog up their screens with a ton of indicators that make it hard to even read the candlesticks on the chart.
But here’s the thing: more isn’t always better.
Experimenting with too many indicators can lead to confusion and analysis paralysis.
That’s why I’m a big advocate for the KISS method – Keep It Simple, Stupid.
And it starts with using only the most important indicators.
VWAP: Your Trading Sidekick
First up, let’s talk about VWAP — the volume-weighted average price. Don’t let the fancy name intimidate you.
VWAP combines volume and price action to help you understand whether a stock is bullish or bearish.
It’s like having a trusty sidekick guiding you through the ups and downs of the market.
Key Levels: Your Map to Success
Next, we have key levels – your roadmap to success in the trading world.
These include the previous day’s close, daily or recent highs, lows, and 52-week highs.
Key levels provide valuable insights into market sentiment and can help you identify potential breakout or breakdown zones.
Key levels are different from support and resistance levels which are also crucial to know for mastering technical analysis…
Support and resistance levels are dollar levels on the chart where the stock either struggles to break above (resistance), or break below (support).
Look left on the intraday chart and daily chart to find support and resistance levels.
Or use a tool that can do the work for you…
Oracle: Your Crystal Ball
Last but not least, let’s talk about Oracle — your secret weapon for navigating volatile stocks.
Oracle gives you support and resistance levels based on technical analysis, helping you make smarter trading decisions.
Check out the support and resistance levels it chartered out on NVIV yesterday…
NVIV chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
But Oracle doesn’t just plot levels on the chart…
When you get full access to Oracle as part of the Daily Income Trader System, you also get its morning watchlist that shows which stocks are bullish or bearish and gives you entry signals for your trades.
With Oracle on your side, you’ll feel like you have a crystal ball, predicting market moves before they happen.
I used the Oracle entry signal at 57 cents as part of my trading plan for NVIV yesterday.
And the stock went on to have an 84% move from that entry!
The simple lesson is: Don’t overcomplicate trading with a bunch of indicators.
Stick to the most important ones like VWAP, key levels, and Oracle so you can simplify your trading strategy and increase your chances of success.
Mastering trading with these three essential indicators is within your reach!
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade