Dual RSI Divergence and Threshold-Crossover Trading Strategy

Summary

This strategy requires two RSI conditions to align before entering: a price-RSI divergence and an RSI crossover of an overbought or oversold threshold. Bullish divergence is described as price making a lower low while RSI does not, followed by RSI rising through 30; bearish divergence pairs a higher price high with weaker RSI, followed by RSI falling through 70. The stated defaults use a 14-period RSI and a 90-bar divergence lookback.

The document presents the double condition as a way to filter signals, while acknowledging that it can delay entries, remains sensitive to parameter choices, and has no built-in stop loss. It recommends additional filters and explicit risk controls. A BTC/USDT futures test window is listed, but the document provides no performance results. The source's divergence calculations and persistent signal variables may not implement the prose definitions reliably, so the described concept should be distinguished from the specific code behavior.

Key ideas

• Long entries require bullish RSI divergence and an upward cross of the oversold threshold.
• Short entries require bearish RSI divergence and a downward cross of the overbought threshold.
• The described defaults are a 14-period RSI, 70 and 30 thresholds, and a 90-bar lookback.
• Dual confirmation may reduce some signals but can cause late entries and does not eliminate false signals.
• No stop loss is built into the described strategy, and no backtest performance is reported.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.