Ever heard of Rob Booker? The guy is a trading guru famed for his magical trading techniques. He is also the brains behind the famous Rob Booker Knoxville Indicator, which is a counter-trend indicator that suggests when there will be a reverse course in future stock prices.
Although you may need some time to learn how the indicator works because what it does is only suggest but not guarantee a reverse course. If you notice a Knoxville Divergence line above a price that has been on an upward trend, it’s a suggestion that the price might move lower soon enough. For this reason, it makes a great indicator for trend and counter-trend traders who want to make short-term moves before entering long-term trend deals. (Try out indicators on Tradingview.com)Rob Booker – Knoxville Divergence Indicator | Indicator Series Click To Tweet
- Momentum indicator: Sometimes the price may be increasing while the momentum is decreasing. When such happens, it could be due to a possible Knoxville Divergence.
- Relative strength index (RSI): Indicates temporarily overbought/oversold market assets.
- Gives price dissents, helping traders to act in long-term trends.
Tips on using the Knoxville Divergence Indicator
The best thing about the KD indicator is that it is suitable for both novices and pros. Here’s how you can make the most of this indicator:
- Obey alerts: KD indicator gives early alerts for trend reversals. It combines momentum divergence and price trends with overbought and oversold Relative Strength Index values to help you predict a reverse course in the near future. New users use such signals to trade accordingly.
- Although the KD indicator is a great technical analysis tool that helps you to easily predict the future, it’s always a good idea to use it alongside other indicators for the best results.
The Rob Booker Knoxville Divergence Indicator is a great counter-trend indicator for anyone. It helps you identify a potential reverse course so you may make informed short-term moves before investing in long-term markets. Please keep in mind that KD indicators don’t often occur on charts but when they do, they’re incredibly powerful.
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