RSI Divergence Signals Filtered by Ichimoku and a Long-Term Average

Summary

This strategy combines regular and hidden RSI divergences with Ichimoku components and a long-term exponential moving average. Bullish divergences compare lower price lows with higher RSI lows, while bearish divergences compare higher price highs with lower RSI highs; hidden divergence patterns are also included. The written overview describes the Ichimoku cloud and a 200-day average as trend and support or resistance filters, requiring indicator agreement before trading.

The source code qualifies that description: it compares cloud boundaries with the 200-period EMA for entry, rather than explicitly requiring price to cross or hold the average. Long and short entries use divergence conditions, while RSI threshold crossings provide exits. The document identifies missed opportunities, indicator conflicts, parameter sensitivity, and overfitting as concerns. It supplies BTC/USDT futures backtest settings but no performance results, so its claims about signal quality are not substantiated by reported evidence.

Key ideas

• The strategy detects regular and hidden RSI divergence using price and oscillator pivots.
• Ichimoku cloud levels and a long-term exponential moving average act as directional entry filters.
• RSI threshold crossings close positions, with separate thresholds for long and short exits.
• The document reports backtest settings but no results, and warns that multiple filters may reduce opportunities or overfit.

Tags

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