If anyone reading this article has a software that they use for trading ASX penny stocks, I would love to hear from you.
There is a problem with trading ASX penny stocks that I came across since talking to some of the people who read my blog. The problem is that the majority of software has the daily chart as the lowest time frame for penny stocks. You cannot trade penny stocks on a daily chart in my experience, especially not with the Ichimoku indicator. In my stock trading I mostly trade mid to larger cap ASX and U.S. stocks. I can get all the time frames from monthly down to 5 minute charts on these stocks, so it is not a problem that I have encountered before.
I have shown an ASX penny stock here NOR.XASX on the daily chart with the Ichimoku indicator. As you can see the daily chart is absolutely useless for this particular purpose. This software is technicianapp.com
If you are trading these types of ASX penny stocks, it is only possible to trade on the smaller time frames. In this case the chart is hourly with a two line MA. The RSI above 50 tells you that the stock is in uptrend. The MA cross gives you the entry and exit. Volume is optional. You also use trend lines with support and resistance. These stocks are not buy and hold. They can go from hero to zero very quickly. You need to have tight stops and be very vigilant.In this case the stop would be just under .10 support.
If you click on the link it will go to the chart with the settings you see here already on the chart. This chart is by bigcharts.com
This is not intended as advice to trade these types of stocks. It is just trying to solve a problem that exists for some people trading penny stocks. I hope this helps. As with all trading I recommend a combination of technical and fundamental analysis to gain the full picture of what is going on.
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