The Arizona Rules - Rob Booker

Phase #3: The “Phoenix” Phase, Trade Type #4 (“Scottsdale”), continued
Here is a checklist for trading the Scottsdale trades:
1. Are we in a trend?
a. The 62 is above the 200 which is above the 800; or
b. The 62 is below the 200 which is below the 800.
2. Where are we in the trend?
a. Within the first 100 candles of the trend, it’s okay to take Scottsdale trades
from the 9,3,3, or the 30,10,10.
b. After about 100 candles, focus just on the 30,10,10.
3. Did the fast line on the Stochastic cross below 80 or 20 and stay there after a
candle closed? This will cause the candles to turn color in xtick. This means that
even though we are trending, the candles moved so far in the opposite direction
(against the trend) that the candles went overbought or oversold. At this time, the
currency pair is “on sale,” meaning we have a chance to trade with the trend at a
favorable price.
a. In an uptrend, we are looking for the Stochastic to go below 20 (oversold).
b. In a downtrend, we are looking for the Stochastic to go above 80
(overbought).
4. Did a candle close with the Stochastic out of overbought or oversold (below 80 or
above 20)? Is this candle obviously bullish or bearish (showing us strength in the
direction of the trend). If yes, then trade.
5. Stop loss goes beyond the most extreme point during the Scottsdale setup.
6. Profit target goes at a recent high or low in the trend – or at any time in the past.
7. Don’t take trades with crappy risk to reward ratios.
Remember the Morris Maurice Evans Rules of Dating / Trading:
If someone has 85% of what you are looking for in a mate, then marry them.
Page 22 of 26