Hidden RSI Divergence with Swing Validation and Slope Filters
Summary
The article outlines an automated continuation strategy based on hidden RSI divergence. A bullish setup pairs a higher price low with a lower RSI low; a bearish setup pairs a lower price high with a higher RSI high. The proposed MQL5 system detects confirmed swing points, checks the spacing and cleanliness of divergence patterns against bar-range and tolerance settings, and can filter signals by the angles of price and RSI slopes.
The implementation also describes fixed lot sizing, optional stop loss and take profit, trailing stops, and chart annotations for swings and divergence angles. The article says backtesting was performed but provides no visible graph, report, instrument, period, or performance figures in the supplied text, so the strategy's effectiveness cannot be assessed from its evidence. Its conclusion presents the system as a customizable educational example; it does not establish that the signals are profitable or robust in live trading.
Key ideas
- Hidden bullish divergence pairs a higher price low with a lower RSI low as a possible uptrend continuation signal.
- Hidden bearish divergence pairs a lower price high with a higher RSI high as a possible downtrend continuation signal.
- Swing confirmation, bar spacing, and tolerance checks are used to validate candidate patterns.
- Optional slope-angle limits filter divergences using price and RSI line steepness.
- The EA includes configurable position sizing, protective orders, trailing stops, and chart markings.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.