/biz/ - Business & Finance

TA is a tool for you to use, if you rely on TA only you will get burned though. Just like if you rely only on fundamentals you will get burned.

The reasoning for this is that TA at best only shows what has happened in the very recent past. It can have predictive power for the future but this needs to be confirmed with something else if you're going to trade correctly, like a bull thesis based off of fundamentals that the technical indicators show that the market is increasingly adopting, or by observing the price action live and seeing the trends that the indicators predict are coming true.

Here are trendlines I drew on the $PLTR chart on a day when I already had a bullish thesis for the stock based on the price action from the day before. The stock traded almost exactly like how technical indicators suggested it would. I'm a fundamentals-biased investor, but I do use technical analysis to confirm my thesis, when I see a stock is trading very much like the technicals would suggest then that suggests I have a strong thesis and the thesis is being increasingly accepted by the market.

You can see that trading on the day starts off with two bull flag formations being formed one in quick succession of the other as the stock breaks through a previous resistance level at 26.20 set in the previous session. The stock then continues to climb and breaks through that resistance level before rejecting off of 27.40 where a new resistance level, the stock bounces between 27.40 and 26.20 before it prints another bull flag formation and then again a second right after that at which point the stock rips off on an extreme tear up to the $29.80 level. A fifth bull flag formation begins to appear, but the level of consolidation happens outside of the triangle shape needed for it to be a true bull flag, and the stock drops again back to the $28 level. 1/2

extremely bullish chart on PLTR today, chart printed 5 bullflags one right after the other with the 5th coming in at the very end of after hours trading as it broke through a major resistance level at 29.5 set after the disappointing earnings call on Tuesday. I think the stock will very quickly climb back up to last Friday's closing price of 32 and could test old highs of 37 from there.

>>29176030
EXTREMELY bullish chart on PLTR today. The chart painted 5 bullflags one right after the other with the 5th coming in the tail end of after hours as the share price broke through a major resistance level set after the disappointing Tuesday earnings call. I think the stock ramps back up to $32 a share pretty fast on Monday and could easily cruise higher and test old levels like $37 especially on any positive news catalyst.