The Arizona Rules - Rob Booker

Phase #4: The “Yuma” Phase, No Man’s Land
A ranging market is when the candles have recently hit the 800 SMA, and the 62 is
between the 200 and the 800. But what about the market when the 62 is between the 200
and the 800, but the candles have not hit the 800 yet?
That’s Yuma Country. It’s no man’s land and you don’t trade on the time frame you’re
watching. And no box trades, either.
This is a time when the pair has not yet decided if it’s trending or if it’s
ranging – it could do either at any point. It makes box trades and
divergence trades more difficult.
Figure 12. The 800 SMA is so far below on this chart that you can’t see it. We aren’t
going to consider divergence trades until the pair drops to hit that level. We might miss
some good trades, but more often than not, we’ll miss the bad ones.
You might try doing some testing of divergence in the Yuma Phase, to see if that can
work for you. I recommend using these settings for the MACD and Stochastic:
MACD: 30, 65, 23
Stochastic: 30,10,10
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