The Arizona Rules - Rob Booker
The Arizona Rules - Rob Booker
The Arizona Rules - Rob Booker
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Phase #3: <strong>The</strong> “Phoenix” Phase, Part I (the Bear Trend)<br />
When the market is trending, I call it the Phoenix Phase. This is where you stay out of<br />
the divergence trades that would tell you to buy. How do we know it’s trending<br />
downward? <strong>The</strong> 800 is above the 200, which is above the 62. <strong>The</strong> trend begins<br />
IMMEDIATELY when the moving averages have all crossed each other.<br />
If you think you see divergence in a trending market, then just<br />
don’t take the trade! Let it go!<br />
Figure 6. This is a trending market because the 62 is below the 200 which is below the<br />
800. We do not trade divergence setups here. <strong>The</strong>se are the divergence traditionally<br />
lose. By avoiding these trades, you can delete at least 50% of your divergence losers<br />
from your testing.<br />
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