You said it pretty well yourself "TA is basically about extrapolating recent price action to predict future trends."
This is a conceptual foundation? What are the causal principles?
> This is feeling like the stock market criminals want to
> pin BAC at the 7 strike!
That's possible. I wouldn't chase at this level. I wouldn't short either. I am done for the day. Just watching what's going on. :-)
TA ha no conceptual foundation other than the belief that human behavior repeats. If TA worked every investor would use it and stocks would be immediately bid up or down, eliminating any 'alphas'. Self defeatng.
No, it is new important fundamental info hitting the marketplace that moves prices and bedevils chartists.
Whatever the case, the price action into the close might tell a lot what would happen to BAC regarding its trend from the current lower 7 range.
Let's wait and see. I am positive it will be interesting to watch. :-)
TA is basically about extrapolating recent price action to predict future trends. But the result of trend analysis can be quite different from a person to another.
I joked in another thread that traderx couldn't see green but only red because he had faulty DNA in his retinal cones but the truth is TA is in the eye of the beholder just like beauty is. LOL
If you feel bearish chances are you would view as bearish the same indicators that a bull would see as bullish.