Nashville Divergence - TFLtfl365.com/The_Nashville_Trade.pdf · TheNasvhilleTrade$ 4$ What does...

The Nasvhille Trade 1

Rob Booker http://tfl365.com

Nashville Divergence


What’s Nashville Divergence? Nashville divergence is a type of “Knoxville Divergence.” It’s just a mini, or smaller version of Knoxville Divergence. But … what the hell is Knoxville Divergence? Divergence is an early warning sign that a stock, or currency pair, or other financial instrument is going to REVERSE and head FAST and FAR in the opposite direction. Knoxville Divergence is my little invention. It occurs when price is moving in one direction, and the momentum indicator is moving in another. Your charts can plot Knoxville Divergence automatically, thanks to the magic of the internet, and cheeseburgers. Actually, not cheeseburgers. But I did build a free indicator to help you. Let’s proceed.


The Knoxville-Nashville Indicator Download You can get the Knoxville Divergence Indicator FREE. I built it for Metatrader 4, eSignal, TradeStation Securities, NinjaTrader, and a bunch of other platforms. Download the indicator here:

http://j.mp/knox-ville If your charting platform is not on the list, you can get the indicator online – for any financial instrument. Just go to:

http://tradingview.com And then click on “indicators” and “MarketPlace Add-Ons” and look under “Booker”. Make sure to set your “candles back” on the indicator to 30.


What does Nashville Divergence look like? Here’s a picture of Nashville Divergence, circled in red:

That red line inside of the red circle is Nashville Divergence. It’s the same as Knoxville Divergence, but it stretches across 30 bars/candles OR LESS. Your charting platform (as long as you have the indicator, and you have the “candles back” set to 30) will AUTOMATICALLY draw that line for you when the divergence appears.


Why is Nashville Divergence important? It’s not. It’s not more important than any other chart pattern. It just works for me. I just love it. If I could knit a quilt of Knoxville-Nashville Divergence, I would sleep with that blanket every night and call it my “woobie.” Just because it’s my woobie doesn’t mean that it will be your woobie. With that said, you should really try my woobie. Ok, that came out wrong. Here’s why I love my woob – I mean, my Nashville Divergence:

1. It does not show up very often.

2. When it does show up, it is usually a sign that price is going to reverse in the opposite direction AND IT HAS A HIGH DEGREE OF SUCCESS IN PREDICTING THAT REVERSAL.

3. It works really nicely on longer-term charts, like the 4 hour, which brings joy to my heart. I love the peace of mind and true happiness that comes from planning trades over the course of days, with HUGE profit targets.


How do you trade Nashville Divergence? STEP ONE: Find a “Woobie” (a setup) Find a Nashville Divergence by looking at your chart, and finding a red line on your screen:

If a line is BELOW the candles, then you have BULLISH DIVERGENCE, which means that price is soon to rise upward. If the line is ABOVE the candles, then you have BEARISH DIVERGENCE, which means that price is soon to fall downward.


STEP TWO: Draw a Trendline Draw a trendline over the tops of the candles that are falling (when you find BULLISH DIVERGENCE), or below the candles that are rising (when you find BEARISH DIVERGENCE).

If you don’t know how to draw a trendline, then Google “how to draw a trendline” and make it happen. It’s so easy you will be a trendline-drawing expert in no time. DO NOT make it complicated, do not start asking questions about the “best way” to draw a trendline. Just learn the basics and start doing it and stop thinking about it.


STEP THREE: Trade it (Buy example) When price opens up a candle beyond the other side of the trendline, take a trade in the direction of that candle. For BULLISH DIVERGENCE (see example below) this means we are going to wait for a candle to open up ABOVE the trendline, and then we are going to buy.

By the way, this is counter-trend trading, so put your big boy pants and big girl pants on. I don’t want to hear any backtalk about it.


STEP THREE: Trade it (Sell example) When price opens up a candle beyond the other side of the trendline, take a trade in the direction of that candle. For BEARISH DIVERGENCE (see example below) this means we are going to wait for a candle to open up BELOW the trendline, and then we are going to sell.

And that’s it. That’s how you find, and take, a Nashville Divergence trade. But wait! There’s more!


But what about _____________? Where do you put your stop-loss? Where do you put your profit target? What’s the win percentage? Is there a way to use this for trend-trading? What about using an indicator to confirm the trade? What happens if it breaks the trendline and doesn’t continue? I believe in you. Not many other people do. People say it’s too dangerous to trade, and that most people are degenerate losers, and traders are too stupid to win consistently. And a lot of other bullshit that just isn’t helpful. But I believe you can get your own answers to those – and other questions – if you simply get the Nashville Divergence on your charts, and you start playing with it, and you don’t overthink it too much. How to find people to talk to about Nashville Trades: If you want to get trade alerts about Nashville setups, and talk with a worldwide group of traders about it, go to: http://tfl365.com/plans


Take the Class on Nashville Divergence: If you want to take a trading course about Nashville and Knoxville Divergence, with new lessons uploaded monthly, go to:

! http://tfl365.com/profit/landing/knoxville/ If you’ve already done that course, and you want a quick class on trading Knoxville-Nashville with pivots, click here:

! http://tfl365.com/profit/trifecta-trade.htm When we work together in that course, you’re going to learn what financial instruments work best, and how to make a big pile of profits with the strategy. I wish you happiness and peace and profits with the Nashville trade. Rob @robbooker on Twitter

Nashville Divergence - TFLtfl365.com/The_Nashville_Trade.pdf · TheNasvhilleTrade$ 4$ What does...

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