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The Arizona Rules - Rob Booker

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Chart Setup<br />

1. If you use xtick for charting, you will need the Stochastic Divergence + SMA<br />

template. You can get it here:<br />

http://www.robbooker.com/books/azrules_white.cht<br />

If you don’t use xtick, or you want to know what you’re looking at on that chart<br />

template, please move to the next step.<br />

2. You need the Slow Stochastic Oscillator, set to 9,3,3. You can alternatively use<br />

the Stochastic 30,10,10.<br />

3. You need the MACD with Histogram, set to 12,26,9. You can alternatively use<br />

the MACD 30,65,23.<br />

4. You need an 800 Simple Moving Average. Color this black or dotted black. If<br />

your charting program does not offer the 800, you need to look at the 200 SMA<br />

on a time frame 4 times greater than the one you’re looking at. (the 200 SMA on<br />

the 4hr chart is the same thing as the 800 on the 1hr). Or you can switch charting<br />

platforms.<br />

5. You need a 200 Simple Moving Average. Color this blue.<br />

6. You need a 62 Exponential Moving Average. Color this red. Woohooo, I love<br />

the 62!<br />

7. Eventually you will need to be able to plot the 89 EMA as well. But we’ll get to<br />

that later.<br />

8. You need to understand how to draw trendlines.<br />

On the next page we’ll look at what a chart might look like after you set it all up. I’ve<br />

used the 60 minute chart because I’ve tested it more than anything else and it works very<br />

well.<br />

Page 6 of 26

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