Rob Booker Divergence System

October 2, 2006

Though I don't consider Rob Booker my full-time mentor, I still do follow a little of what he's been up to.  I did pay for it after all so I might as well utilize it. 

Anyway, I've heard him talking more about his divergence system, so I decided to shoot him off an email to find out a little more.  What peaked my interest was that he mentioned in one of his videos that it works well during the Asian session.  I had altogether given up trading the Asian session months ago.  His response regarding his divergence system was "that system works really well in the asian session, even on short term charts like the 5 and 15 min."  I'm sure a lot of you know what divergence is but I put together a nice little reference PDF with graphs and examples of the 4 types of divergences.  You can download it here:

pdf Forex Divergence 25/08/2006,14:53 90.84 Kb

If you're interested, start looking for divergences on your charts between price and especially an indicator like MACD.  You could also use RSI, CCI, or another indicator of your choosing.  This requires some work but it may be worth it.  When I find the time to look into it more, I'll be sure to post more about it. 

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Divergence Chart

August 25, 2006

As most of you are aware, divergence can be a good predictor of future price.  I posted a couple of weeks ago the differences between the following types of divergences:

  1. Classic Bullish Divergence
  2. Classic Bearish Divergence
  3. Bearish Hidden Divergence
  4. Bullish Hidden Divergence  

For someone that hasn't been doing this for years and years, it isn't always easy for me to look at a chart and immediately see that a certain type of divergence is evident.  These 4 types of divergences have 4 totally different characteristics and I've been known to make a mistake identifying them.  Therefore, I have created a divergence identification chart PDF complete with charts.  It's only 2 pages and printed in landscape can really help a lot with spotting divergences.  Check it out. 

pdf Forex divergence 25/08/2006,14:53 90.84 Kb

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