Rob Booker Reversal Indicator was developed by Rob Booker and programmed by Andrew Palladino. The indicator makes use of both MACD and Stochastic indicators in guiding traders when making viable trading decisions.
When the MACD line crosses 0 from above and the stochastic %k is greater than the overbought levels, a red triangle appears. When the MACD line crosses 0 from below, and the value of stochastic %K is lower than the oversold level, a green triangle appears.
Features of Rob Booker Reversal Indicator
Fact that the indicator uses both MACD and stochastic indicators, following characteristics define the application of the indicator.
- MACD fast
- MACD slow period
- MACD signal period
- Stochastic period
- Price %period
- Price %period
- Stochastic overbought level
- Stochastic oversold level
Determination of the Rob Booker Reversal signals
[MACD line, signal line, histogram line] = MACD (close, MACD fast period, MACD slow period, MACD signal Period)
Fast price k = 100 * (close — lowest (low, stochastic period))/ highest (high, stochastic period) — lowest (low stochastic period))
Fast price d = SMA (fast price k, price d period)
Slow price K = SMA (fast price k, price k period)
Slow price d = SMA (slow price k, price d period)
Full price k = SMA (fast price k, price k period)
Full price d = SMA (full price k, price d period)
What does Rob Booker Reversal tell a trader?
The indicator signals a trader that it is a buy reversal when the MACD line crosses over 0 and full price k is less than the stochastic oversold levels. On the other side, a trader is informed that it is a sell reversal when the MACD line crosses under 0 and the full price k is more than the overbought stochastic levels.Rob Booker Reversal Indicator | Indicator Series Click To Tweet
The Rob Booker Reversal supplies a trader with both buy and sell reverse alerts for more informed decision-making while trading. The indicator is built using MACD and stochastic indicators, which results in a green triangle or a red triangle. The flexibility of the indicator allows you to specify as per your criteria for trading.
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