There are several chart types to choose from. The 3 most popular chart types are line charts, candle stick charts, and bar charts. There are also several technical indicators to choose from as well.
Technical indicators are any class of metrics whose value is derived from generic price activity in a stock or asset. Technical indicators are usually used as “over-lays” on top of a particular stock chart so you can easily see them.
An Example of a technical indicator is the RSI or Relative Strength Index. The RSI lets us know if a stock is considered “oversold” or “overbought” based purely on it’s price history and not it’s fundamental value.
A score of 50 is considered stable, 30 or lower is considered oversold, and 70 or higher is considered over bought. The RSI indicator is usually found directly on top of a chart.
Where to find technical analysis software?
Software for technical analysis is offered by most online brokerages such as Etrade or TD Ameritrade. If you don’t have access to technical analysis software through your brokerage http://stockcharts.com is a great place to go to for quick online analysis.
Stockcharts.com allows you to pick a chart type & choose from more then 30 different indicators to use on any given stock ticker including penny stocks.
Technical analysis is extremely useful for traders, and can help you make serious money from penny stocks by minimizing your losses, and maximizing your gains.
By mastering a few technical indicators you can come up with a winning strategy & a winning trading plan.
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