Now, let me just start off by saying that this article is going to merely scratch the surface of technical analysis. Price, the moving averages, and the hard data will not miss the next big move, which is why consistent and diligent implementation of investment and trading systems can keep you aligned with whatever trend comes next (bullish or bearish). Difficult periods in the stock market are typically followed by easier periods, which underscores the need to continue to stay the course and execute in a consistent manner. During the 1920s, the U.S. stock market underwent rapid expansion, reaching its peak in August 1929, after a period of wild speculation. Stock prices began to decline in September and early October 1929, and on October 18 the fall began.
Black Monday was followed by Black Tuesday (October 29), in which stock prices collapsed completely and 16,410,030 shares were traded on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping out thousands of investors, and stock tickers ran hours behind because the machinery could not handle the tremendous volume of trading. After October 29, 1929, stock prices had nowhere to go but up, so there was considerable recovery during succeeding weeks. Overall, however, prices continued to drop as the United States slumped into the Great Depression, and by 1932 stocks were worth only about 20 percent of their value in the summer of 1929.
The stock market crash of 1929 was not the sole cause of the Great Depression, but it did act to accelerate the global economic collapse of which it was also a symptom. The OTCBB is a United States quotation medium used for many over-the-counter equity securities that are not listed on the NASDAQ or other national stock exchanges. According to the Securities and Exchange Commission (SEC) fraudsters often claim or imply that an OTCBB company is a NASDAQ company to mislead investors into thinking that the company is bigger than it is. A stock promoter is basically someone who promotes a stock, ultimately attempting to persuade others to purchase it so that its share price increases.
Stock of non-reporting companies (those without current SEC filings) may be quoted in the Over-the-Counter Markets or Pink Sheets” as they are usually known as. Most OTCBB companies are dually quoted, meaning they are quoted on both the OTCBB and the Pink Sheets”. Stock promoters used to rely on cold calling on prospective investors but now mainly use the Internet, which provides for a much more efficient method of promoting a stock to a wider audience.
Stocks traded in the Pink Sheets” are usually lightly traded microcap/penny stocks, and both retail and institutional investors usually avoid them, because of fears that share prices are easily manipulated and therefore a potential for fraud exists. Usually, stock promoters promote penny stocks because of the difficulty in finding information on these companies as they are normally listed on the OTCBB or OTC Markets, which do not require that companies provide as much financial information as other exchanges, such as the NASDAQ or NYSE. If the stock closes higher than the opening price the candle is referred to as a bullish candle.