RSI Divergence + EMA Filter [Proozac] — Strategy by Proozac98
By Proozac98
Performance Metrics
- Author: Proozac98
- Symbol: OANDA:XAUUSD
- Timeframe: 5 minutes
- Win Rate: 100.0%
Description
RSI DIVERGENCE + EMA FILTER STRATEGYA fully backtestable trading strategy that combines RSI divergences with an optional EMA trend filter to identify high-probability reversal entries while trading in the direction of the dominant trend.I like to filter it in 5m and use it like its uploaded, that's my personal advice.You will see good winrate in stocks and almost in any index.The strategy automatically manages every position with ATR-based stop-loss and take-profit levels, with the option to use a trailing ATR stop instead of fixed exits.FEATURESRSI Divergence DetectionThe strategy detects confirmed bullish and bearish RSI divergences using swing highs and swing lows.• Bullish Divergence = Lower Low in price + Higher Low in RSI• Bearish Divergence = Higher High in price + Lower High in RSIAn optional Overbought/Oversold filter can require divergences to begin from extreme RSI levels, reducing false signals.EMA Trend FilterWhen enabled:• Long trades are only taken above the EMA.• Short trades are only taken below the EMA.This helps avoid taking reversal signals against the primary trend.Risk ManagementEvery trade is managed automatically using ATR.• ATR-based Stop Loss• Configurable Risk:Reward Take Profit• Optional ATR Trailing StopVISUALS• Green Triangle = Bullish divergence• Red Triangle = Bearish divergence• Divergence lines connecting swing points• Trend EMA• LONG / SHORT entry labels• Background color showing current positionALERTS• Long Entry• Short EntryINPUTSRSI Settings• RSI Length• Pivot Left / Right Bars• Overbought Level• Oversold Level• Optional OB/OS FilterTrend Filter• Enable/Disable EMA Filter• EMA LengthRisk Management• ATR Length• ATR Stop Multiplier• Risk:Reward Ratio• Enable ATR Trailing Stop• Trailing ATR MultiplierDisplay• Show Divergence Lines• Show Entry LabelsSUGGESTED USEThis strategy performs best after optimizing the Pivot Left/Right settings for the instrument being tested. Lower values generate more signals with higher noise, while larger values produce fewer but stronger divergences.The EMA trend filter is recommended to avoid trading against the dominant market direction.The Overbought/Oversold filter further improves signal quality by requiring divergences to originate from extreme RSI conditions.Always evaluate performance using the Strategy Tester and adjust commission, slippage and risk parameters to match your market and trading conditions.