How to Trade Penny Stocks in a Downtrend

Penny Stock Downtrend Pattern

In downtrending markets its all about shorting stocks that are in clearly defined downtrends.
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The classic downtrend set up is the Pullback Off Lows pattern (POL).

Pullbacks Off Lows

As you can clearly see this issue is locked in a downtrend. However within that downtrend you can also see a trend within the overall trend that are mini uptrends. Those mini uptrends are commonly reffered to as Pullbacks Off Lows or POL’s for short.  Everyday we scan for issues that are in clearly defined downtrends that are Pulling back Off Lows.  Every week our service puts out a list of names that are showing this pattern for you to be aware of IN ADVANCE. 

Here’s another good example of a Pullback Off Lows pattern:

After crashing through support (red box), LOPE attempted to rally, but only made it back to prior support which is now acting as resistance.

We draw a pink line connecting the lows of its rally attempt and upon a break below the pink line, we initiate a short-sell trade.

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When a stock on our watch list triggers a trade, we send you a Trade Trigger email alert so you can take the trade at the opportune time.  And when we are ready to take our gains, we send you a Locking In Gains email alert.

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