How to Find the Best Penny Stocks to Trade? - Using technical indicators

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Technical Analysis 101
Sun, May 28, 2023, 9:27 PM ET  ·  1 min read  ·  0 view

There are a lot of penny stock investors are trading strictly based on technical patterns and signals, and these kind of penny stock traders have some commonly used strategies as well as signals.


Continuation Pattern


Trend Consistency


Some penny stocks investor would like to trade penny stocks with trend consistency, which meanstheir short-term, mid-term and long-term trend are facing the same direction.

For example, you can type in the query below to find penny stocks with up-trend consistency using AInvest:

SMA20 move upward; SMA50 move upward; SMA200 move upward; Price < 5

You can also use the query below to find down-trend consistency penny stocks using AInvest:

SMA20 move downward; SMA50 move downward; SMA200 move downward; Price < 5;


Volume Spike Breakout


A volume spike breakout is when there is a sudden increase in trading volume that is significantly higher than the average volume of the preceding month. This can indicate a significant change in market sentiment and can be used as a signal to buy or sell a stock.

If you want to find this kind of penny stocks, you can always use AInvest and type the query below:

Volume spike breakout; Price < 5

Reversal Signal


Golden Cross


A golden cross is a bullish breakout pattern that occurs when an asset’s short-term moving average (such as the 20-day) crosses over its mid-term moving average (such as the 50-day) on a graph. It indicates that the market may be heading toward a longer-term uptrend or bull market .

You can type in the query below to find penny stocks with moving average golden cross using AInvest:

SMA20 crossed SMA50 above; Price < 5;


Bullish Belt Hold


A bullish belt hold is a candlestick pattern that suggests a possible reversal of the prevailing downtrend. It forms when, following a stretch of bearish trades, a bullish or white candlestick occurs. The opening price, which becomes the low for the day, is lower than the close of the previous day. The bullish belt hold should be a long white (or green) candlestick to indicate that the bulls have taken back control. Ideally, the candle preceding the pattern should be accompanied by a long bearish candlestick.

You can use the query below to find penny stocks just formed bullish belt hold using AInvest:

Bullish belt hold; Price < 5;

Technical analysis can be helpful when trading penny stocks, but it is not the only thing you should be using when trading. Basic price & volume actions should not be ignored when making an investment decision. If you want to know how to find the best penny stocks to trade using descriptive metrics, you can read the instruction.

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