Strategy based on RSI divergence
RSI Divergence searches for price extremes unconfirmed by the RSI oscillator. A bullish divergence leads to a buy and a bearish divergence prompts a sell. The trade lasts until RSI reverses or a stop fires.
Divergence setups often emerge near the end of long trends. By comparing the oscillator's behavior with price action, the strategy attempts to catch early reversals with controlled risk.
- Entry Criteria: Signals based on RSI.
- Long/Short: Both directions.
- Exit Criteria: Opposite signal or stop.
- Stops: Yes.
- Default Values:
- RsiPeriod = 14
- StopLossPercent = 2m
- CandleType = TimeSpan.FromMinutes(5)
- Filters:
- Category: Trend
- Direction: Both
- Indicators: RSI
- Stops: Yes
- Complexity: Basic
- Timeframe: Intraday (5m)
- Seasonality: No
- Neural Networks: No
- Divergence: Yes
- Risk Level: Medium