I think it is time to get some clarity about TA an
Post# of 56323
First, TA is ....EXTREMELY difficult to do with ANY accuracy in the OTC markets, and here is why.
TA is basically several types of math formulations that are based on the history of charts and the patterns in those charts. In the higher exchanges you will find many consistency's in those patterns. The reason for that is that it cost too much money to manipulate the share price simply based on volume. Only the very rich, and very wealthy funds can even come close to having cause and effect on the chart patterns. Thus, for the most part they are consistent and a lot of times predictable. Not withstanding watched closely by the SEC.
Not the case for penny stocks. With these, simply a news item or a rumor can drastically affect the pps. People with as little as 10 k dollars can affect the pps. That is just a fact.
Now, that said, there ARE groups of people who get together for the sole purpose of manipulating the share price up and down. They buy very low, pump the stock up through social media, and sell in a coordinated effort at a pre-determined high within the group. Also a fact.
Then you have the Market makers who understand simply by the buys and sell orders what is happening, and join in to make the spread even more and thus make a shit load of money on your dime.
So, where does that leave TA ? Only the very experienced person can predict ahead of the Market makers or even with them. Also, to do that you would need to be a trader who can make several trades a day easily. Very expensive to do.....especially if your wrong.
What TA can do in this arena is to give you an idea of the possibilities within a certain range of what is happening, why, and about when it may happen. Nothing in stone as the stocks are regularly manipulated, and you never know when news will hit that changes everything.
Bottom line is that if you try to use TA on penny's you are likely to fail. There are many other things to look at along with TA for it to make sense, and then you can expect a surprise.
This brings me back so something I said a long time ago when I was posting links for education in this. If you are going to trust TA , then first, you must know what it is and learn how to use it. It is simply a tool and worthless without other tools or the education to understand fully what your doing.
I personally like TA, but, that is just me and I am VERY cautious when considering my own much less anyone else's. As we should all be.
I could go on and on with this but, really no need.
The above is simply my opinion and thoughts on the matter and should be viewed as such. Have a great day. GLTA