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Does technical analysis work on penny stocks? If yes, and we're talking about stocks that trade under $3, is there a point at which it stops being effective?

If yes, does technical analysis work the same for stocks trading at $3 as it does for stocks trading at $0.50?

If no, then why? Is it because of the volatility or the market they are traded under?

Bob Baerker
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ILovePaperTowels
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1 Answers1

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support and resistance levels exist. these are just psychological barriers that are easily charted. gaps fill, breakouts happen, volume and price diverge and converge

indicators that need charting frequently don't work simply because there isn't enough pricing information and volume.

CQM
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