Have you checked out Jeff Williams Stock Trading Starter Pack ?
Jeff Williams Stock Trading Starter pack is a comprehensive FREE resource that includes a ton of different learning aids and teaches you Jeff William’s penny stock trading strategy!
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The Jeff Williams Penny Stock Trading Starter Pack should help you get the basics of penny stock trading and introduce you to successful trader, Jeff Williams. Jeff is known for his ability to take a small trading account and rapidly grow it into a much larger one over the period of a few weeks or months.
Jeff Williams FREE Stock Trading Starter Pack really has everything in it that you need to start making money from trading penny stocks….READ MORE…
What Can You Learn From Jeff Williams Penny Stock Trading Starter Pack ?
You can learn one of the top indicators that Jeff Williams looks for on his daily scans… And some of his Profit Prism Platinum members recently used it to bank some green of their own. On an energy stock, even!
Here is my take on Jeff Williams penny stock trading strategy and one of his favorite ways to make money trading small cap stocks.
As you may or may not know, one of the big things Jeff Williams looks for in his stock scans is consolidation.
Consolidation is a relatively simple concept, and there’s plenty of ways to play it for a profit.
Basically, consolidation is an extended period of sideways movement, where a stock’s price stays within a pretty narrow range, creating a sideways pattern on the chart.
This can often be interpreted as mixed interest in the stock, with supply and demand pretty evenly matched. In other words, there’s not a ton of lopsided buying or selling action taking place to cause big directional price fluctuations.
I like to think of it as the stock taking a break, and winding up for its next big move on the charts.
GPOR consolidated between $0.40 and $0.80 until a bump in volume helped the shares surge higher.
You can see the above recent chart that Jeff Williams put together to illustrate his system.
It’s marked to show the top and bottom range of the consolidation pattern on GPOR’s chart above. You can consider the top and bottom of the price range as levels of resistance and support, respectively.
When a stock breaks above the resistance, or below the support, it’s called a “breakout” and may be a sign to traders that it’s time to buy or sell (depending on which way the breakout occurs).
Personally, I like to see an upwards breakout that is supported by a surge of trading volume, since this means there’s crowd support for a continuation higher.
You’ll also often see consolidation as part of another chart pattern, like bull flags or bear flags. Consolidation forms the “flag,” created by sideways price action indicating the run higher or lower has lost steam, and traders are waiting to see what’s next before they make their move.
You can learn more about bull flag patterns in Jeff Williams Stock Trading Starter Pack! Download it here for FREE!
RCUS formed a nice bull flag pattern earlier this month.
If you’re watching an intraday chart, you may notice consolidation is more common in the late morning or early afternoon, since this time is typically associated with lower trading volumes while everyone takes a three-martini lunch before coming back for the last hour of the day or so.
But consolidation can last for a period of days, weeks, or even months in some cases. Keeping that in mind, spotting a consolidation pattern alone isn’t enough of a reason to take a trade, since you have no idea when (or even if) there will be enough trading volume to help move the stock higher.
Feeling pretty confident? Great. Let’s take a look at how some of Jeff William’s Profit Prism Platinum members recently played some intraday consolidation.
An Energy Play? In This Market?
I know, I know. I’ve been talking a lot of smack about energy stocks, but that didn’t stop Jeff William’s Profit Prism Platinum members from lighting it up on this petroleum trade.
Whiting Petroleum Company has been having a bad year. Like, a really bad year. You think energy in general has had a rough few months? WLL says “hold my beer.”
This time last year, Whiting Petroleum Company was trading at over $30 per share…
Now, they’re around $0.30 per share. Yeah. Ouch. The NYSE even threatened to kick them off the exchange if they can’t raise their common stock price to $1 or higher, pronto.
Luckily, it was starting to look like WLL’s freefall was bottoming out. Over the last few weeks, the shares have been consolidating between $0.30 and $0.40, and a few days ago the company promised it would restructure in an attempt to boost share prices.
Coupled with a recent analyst price target of $4.32, the news seemed to draw a little bit of interest to WLL shares…
And boom! There she goes. You can see the start of the volume increase on April 21, and on April 22 the shares really rallied and managed to break through the upper resistance of the consolidation range!
The little volume spike on the 21st was a sign of good things to come for WLL.
They didn’t quite tap that promised $1 level, but did manage to close comfortably at $0.84, which is quite an improvement from where they were wallowing.
Jeff Williams talked about WLL in his Profit Prism Platinum chat room plenty of times earlier this week. While he wasn’t totally talked into the trade himself, plenty of the Jeff’s subscribers scored some green when the energy stock exploded on Wednesday.
Here is a screen shot of some of the subscribers success!
Peyton was done with his “work day” by 10:40 AM!
There was some nice trades like $WLL in Jeff Williams Profit Prism service this week. However there were also a lot of losing trades including $BIOC, $TRXC and KNOS. Those are just a few where the patterns just didn’t hold up.
Even in Jeff Williams Weekend Wiretaps program (I am a member of that service as well), his best pick of the week only went up $0.02 all week.
This last week I tried buying areas of consolidation on a few of Jeff’s Alerts, but most of the time they just broke down. It was disappointing! It seems like the only person making money in this market is Kyle Dennis with his catalyst based day trades.
Good Luck trading!