Strategesis

From Safehaven.com (Marty Chenard):

Notice what happens if you draw a horizontal line at zero and watch the green Smoothed Moving Average as it rises above or below the line.

When it is above zero and trending higher, the SPY (seen on the bottom of the chart) has a nice intra-day up rally … see the white circles.

Now, look at what happens when the green Smoothed Moving Average falls below the zero line where the orange circles are. The SPY had an intra-day drop worth paying attention to.

Continued

This entry was posted on 2011-02-04 at 14:48 and is filed under education, technical indicator. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.