TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

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A security pattern traces the distinct movements of security prices that, once recognized, help traders to make informed trading decisions. These patterns are identified by their vital geometrical elements, which are formed by changing security prices. Let's look at some cheap stock opportunities by analyzing these patterns.

Buy Signal for Archrock, Inc (AROC) (Triangle Descending)

A triangle descending pattern is formed when the price of a security establishes a support level (1, 3, 5) and bounces off that level to a declining resistance level, creating a down-­sloping top line (2, 4). The breakout can either be up or down, depending on if the resistance or highest support level is broken first.

Trade Idea:

• Buy near the breakout (entry) price – $9,62.
• Sell at the target (exit) price – $10,10.

Buy Signals for Hywin Holdings (HYW), Actinium Pharmaceuticals (ATNM), and CTI Biopharma Corp. (CTIC)

Trade Idea:

• Buy at the opening of the stock market on Monday if the opening price has gone up by no more than 0.5% of Friday's closing price.
• Sell after the price has risen by 2% from Friday's closing price, or at the end of the trading week if the target is not reached.

Buy Signal for Epsilon Energy Ltd. (EPSN)

Trade Idea:

• Buy EPSN at the current market price if seen as appealing.
• Sell EPSN after receiving the "sell" recommendation from trusted analyses.