There are three things that you must verify are true about a security before you can apply standard chart and/or indicator analysis to the security's chart. These three key assumptions are:
High Liquidity
Low liquidity stocks are often very low priced that means that their price can be manipulated by someone with lots of resources. Many amateur investors may fall into this trap. When you buy a stock with low liquidity, you probably won't get it at the price you were quoted because there are no one selling at this price.
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