RSI Divergence Signals with Rolling Support and Resistance

Summary

This strategy combines RSI momentum, price divergence, and rolling support and resistance to generate long and short signals. It compares recent price highs or lows with RSI highs or lows: a lower price low alongside a higher RSI low suggests a bullish divergence, while a higher price high alongside a lower RSI high suggests a bearish divergence. The conditions also require price to remain relative to a support or resistance level calculated from a rolling lookback.

The described implementation uses a 14-period RSI, 50-period support and resistance levels, and percentage-based stop-loss and take-profit orders. The published backtest configuration is for BTC/USDT futures on a 10-minute interval over a one-week window, but no performance results are provided. The RSI overbought and oversold inputs are plotted but do not appear in the entry conditions. The strategy description mentions breakouts, though the source signals use divergence and relative level conditions. Its stated limitations include false signals in ranging markets, sensitivity to parameter choices, and slippage; historical testing would be needed to assess performance.

Key ideas

• The strategy looks for price and RSI divergence as a possible reversal signal.
• Bullish and bearish setups also require price to be positioned relative to rolling support or resistance.
• The implementation sets percentage-based stop-loss and take-profit levels for both long and short entries.
• The RSI threshold inputs are displayed but are not used in the source entry logic.
• The published configuration gives a brief BTC/USDT futures test setup without performance evidence.

Tags

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