What a whirlwind weekend it was for us!
I had to go live to tell you about an opportunity I saw coming, and I hope you all were able to make it!
Right now though, I want to take a step back and tell you something cool that maybe you didn’t know.
Were you aware you can use some of my very favorite, hand-crafted indicators on TradingView for free?
Seriously, here’s how you grab them:
Now let me show you how to use one really quick: just for fun!
It’s called Knoxville Divergence, and I developed it myself.
Knoxville Divergence (let’s just call it KD for short) appears on your chart as a red line above your candles if it’s a bearish indicator and a red line below your candles if it’s a bullish indicator.
I like to go to the settings for my KD and set the “bars back” setting to 30. that way you’re not getting KD every other candle, but you’re also not getting these super long lines that are practically useless.
Here’s what that might look like:
Penn National Gaming is actually a stock I like a lot long-term.
But this is just a good example of what to look for with KD.
Those three red bars on the left side of the chart are KD. When that triggers, it shows that three conditions are simultaneously being met:
- Price is rising
- The momentum indicator, set to 21, is falling
- The Relative Strength Index, or RSI, also set to 21, is overbought
When those three conditions are all being met, it’s a pretty good indicator that the stock is overbought and likely to fall.
And as you can see, there’s some sideways movement, then a red reversal tab fires (another of my free indicators that we’ll go into another time) and the stock drops.
So that’s how to use KD in a nutshell. If you go to Youtube and search “Rob Booker Knoxville Divergence,” you can get some old video lessons from me about it if you want to know more (plus you’ll see me from the past, which is almost like time travel).
And if you want to know more about how I trade falling stocks and what I look for in a bear market, check out that interview I did at this link.