Thursday, January 16, 2014
An illustration of TA's inexactness
Here's the chart for B2Gold.
Notice we're coming up to a minor looking pivot at $2.40. But the Bollinger bands are still rather narrow and MACD looks rather sedate. So this isn't a concern, right?
Compare that with the chart for B2Gold, below:
Wait, what happened? We already blew through that November pivot? And man, it's getting a bit extended, no? This is the farthest it's been above the SMA(50) since August.
So what happened? The first chart is in USD, the second in CAD. These currencies have been drifting apart recently.
Which is why I actually don't pay too much attention to the TA, despite what my constant posting of charts might suggest. It's really just raw material for my internal narrative.