Moving Average is an indicator used in technical analysis showing the average value of a security’s price over a set period. MOving Average can show the direction of a trend and to smooth out price. Typically, upward momentum is confirmed when a short-term average (e.g.50-day) crosses above a longer-term average (e.g. 100-day). This is called the “Golden Cross”. The long-term moving average becomes the new support level.
Downward momentum is confirmed when a short-term average crosses below a long-term average. This is called the “Death Cross”. The long-term moving average becomes the new resistance level.

From the image above, chart of Ford, the “death cross” is in the circle. I use the 50-day MA and 100-day MA. After the “death cross”, Ford tumble reaching $1 from $6.

Tags: death cross, ford, golden cross, Moving Average, Technical Analysis

Penny stock are stocks which trades for less than $5. Some saying that penny stocks are traded below $1. Penny stock is high righ, but can also reward high return. Penny stock can give you huge returns. To succesfully play with penny stock, you have to know the right strategy.
You should not use plenty of money, because it is too risky, and besides with penny stocks you can get huge returns.

If you want to play with penny stock, then you have to understand about technical analysis. See technical analysis section from this website. Understanding chart will be very essential for you to make decision. Charts can help you determine good entry and exit. Support, resistance, high price, low price, and volume can be very usefull for you investing. When a stock reach its support level, it will be hard to go down again. And when a stock reach its resistance level, it will be hard to go up again. Volume is also an important indicator for technical analysis. A huge volume shows strong direction. When a stock fall with high volume, it is a signal that the stock will go down more.

You should also use indicator and oscillators, like Moving Average, MACD, and RSI. Moving average shows average price of a security, which shows trend. MACD can shows downward or upward momentum. While RSI shows whether a security is overbought or oversold. When it is overbought, the commodity usually go down, and when it is oversold, the commodity will go up.

If you can not use technical analysis, then you can search below for services that gives report on stocks which will go up. Try searching “stock penny report” or “stock penny”.

Tags: hige return, MACD, Moving Average, oscillators, penny stock, RSI, stock penny report, technical analy, volume

Technical analysis is done by looking at previous price, and volume data. Technical analyst look at past chart of price and different indicator to make prediction about the future prices. The human emotion is an important aspect here. Their willingness to buy stock at a certain price will determine future price. This analysis assumes that price moves at trend, and history repeats itself. It is believed that this analysis is more art than science. Because of that, there has been plenty of critics to this analysis, due to lack of evidence of it’s performance. But it is still a popular method in the world, through its easiness. Critics also came from well known fundamental analyst, Warren Buffet. It is also inconsistant with market hypothesis, like Efficient Market Hypothesis (EMH) and Random Walk Hypothesis.
How?
The most popular method used in this analysis is support and resistance, bollinger band, moving average, momentum, stochastic oscillator and indicator such as MACD. Moving Average is the average closing price. They also look at pattern at chart like the popular head and shoulder. There at a lot of software out there which can help you with this kind of analysis.
How’s the performance?
Sometimes it works sometimes it don’t. But due to it’s activeness in trading, it has high cost transaction. So you must deduct your return with this transaction cost.
For who?
Technical is for short term player. They are usually very active in their trades. Whatever the price movement, they can go in by going long or short. This analysis is easy to do, especially by looking at charts, making is a very popular analysis.

Tags: bollinger band, chart, Efficient Market Hypothesis, MACD, Moving Average, Random Walk Hypothesis, resistance, short term player, stochastic oscillator, support, Technical Analysis, Warren Buffet