Rob Booker Reversal
Definition
The Rob Booker Reversal is based on MACD and Stochastic indicators. A red triangle will appear if the MACD line has crossed 0 from above and the stochastic %K value is greater than the overbought level. A green triangle appears if the MACD line has crossed 0 from below and the stochastic %K value is lower than the oversold level.
History
This indicator was created by Rob Booker, experienced entrepreneur and currency trader.
Takeaways
The Rob Booker Reversal is constructed using a combination of MACD and Stochastic indicators. It should be used by those who understand both MACD and Stochastics. When the indicator has been added to your chart, specific inputs can be changed to fit your criteria. In the indicator settings the following items can be changed:
- Fast MA Period
- Slow MA Period
- KPeriod
- Slowing
- Stochastic Upper
- Stochastic Lower
Summary
When the Rob Book Reversal is added to your chart, you will notice that either a red triangle or green triangle will appear. Understanding the reasoning behind these triangles is essential. Red triangles appear when the MACD line has crossed 0 from above and the stochastic %K value is greater than the overbought level. Green triangles appear if the MACD line has crossed 0 from below and the stochastic %K value is lower than the oversold level.