Friday, May 21, 2010

"Potato Trader" Trend is Down


Crossing Average Lines Create Potatoes - They go from Up>Down>Up>Down

SPY 20 Day, 1 Hour - 5.20.10 - "Potatoes" can give us a sense of Direction and Thrust that help make better "Swing Trade" Decisions.  We use the 10 and 30 Day Moving Averages as they give a more distinct visual Potato.  No system is perfect but the "Visual" can give us an instant feel for the situation.  The "Gap" in the Potato at the close leaves a lot to work to do in order to close it up.  This would suggest either a sideways move or more move to the downside for Friday.