RSI Divergence Strategy v6 by TagsTrading
By pivot
Performance Metrics
- Author: pivot
- Symbol: BINANCE:BTCUSDT
- Timeframe: 3 hours
- Net P&L: −9.96 USDT (−4.98%)
- Win Rate: 64.1%
- Profit Factor: 0.962
- Max Drawdown: 64.69 USDT (27.29%)
- Total Trades: 170
Description
What this doesDetects regular and hidden divergences between price and RSI using confirmed RSI pivots. Adds RSIpivot entry gates, a normalized strength + volume filter, optional volume gate, delayed entries, and transparent risk management with rigid SL and activatable trailing. Visuals are throttled for clarity and include a gap-free horizontal RSI gradient.How it works (simple)🧮 RSI is calculated on your selected source/period.📌 RSI pivots are confirmed with left/right lookbacks (lbL/lbR). A pivot becomes final only after lbR bars; before that, it can move (expected).🔎 The latest confirmed pivot is compared against the previous confirmed pivot within your bar window:• Regular Bullish = price lower low + RSI higher low• Hidden Bullish = price higher low + RSI lower low• Regular Bearish = price higher high + RSI lower high• Hidden Bearish = price lower high + RSI higher high💪 Each divergence gets a strength score that multiplies price % change, RSI change, and a volume ratio (Volume SMA / Baseline Volume SMA).• Set Min divergence strength to filter tiny/noisy signals.• Turn on the volume gate to require volume ratio ≥ your threshold (e.g., 1.0).🎯 RSIpivot gating:• Longs only if RSI at the bullish pivot ≤ 30 (default).• Shorts only if RSI at the bearish pivot ≥ 70 (default).⏱ Entry timing:• Immediate: on divergence confirm (delay = 0).• Delayed: after N bars if RSI is still valid.• RSI-only mode: ignore divergences; use RSI thresholds only.🛡 Risk:• Rigid SL is placed from average entry.• Trailing activates only after unrealized gain ≥ threshold; it re-anchors on new highs (long) or new lows (short).What’s NEW here (vs. the reference) — and why you may care• Improved pivots + bar window → fewer early/misaligned signals; cleaner drawings.• RSIpivot gates → entries aligned with true oversold/overbought at the exact decision bar.• Normalized strength + volume gate → ignore weak or low-volume divergences.• Delayed entries → require the signal to persist N bars if you want more confirmation.• Rigid SL + activatable trailing → trailing engages only after a cushion, so it’s less noisy.• Clutter control + gradient → readable chart with a smooth RSI band look.Suggested starting values (clear ranges)• RSIpivot thresholds: LONG ≤ 30 (oversold), SHORT ≥ 70 (overbought).• Min divergence strength:0.0 = off3–6 = moderate filter7–12 = strict filter for noisy LTFs• Volume gate (ratio):1.0 = at least baseline volume1.2–1.5 = strong-volume only (fewer but cleaner signals)• Pivot lookbacks:lbL 1–2, lbR 3–4 (raise lbR to confirm later and reduce noise)• Bar window (between pivots):Min 5–10, Max 30–60 (increase Min if you see micro-pivots; increase Max for wider structures)• Risk:Rigid SL 2–5% on liquid majors; 5–10% on higher-volatility symbolsTrailing activation 1–3%, trailing 0.5–1.5% are common intraday startsPlain-text examples• BTCUSDT 1h → RSI 9, lbL 1, lbR 3, Min strength 5.0, Volume gate 1.0, SL 4.5%, Trail on 2.0%, Trail 1.0%.• SPY 15m → RSI 8, lbL 1, lbR 3, Min strength 7.0, Volume gate 1.2, SL 3.0%, Trail on 1.5%, Trail 0.8%.• EURUSD 4h → RSI 14, lbL 2, lbR 4, Min strength 4.0, Volume gate 1.0, SL 2.5%, Trail on 1.0%, Trail 0.5%.Notes & limitations• Pivot confirmation means the newest candidate pivot can move until lbR confirms it (expected).• Results vary by timeframe/symbol/settings; always forward-test.• Educational tool — no performance or profit claims.Credits• RSI by J. Welles Wilder Jr. (1978).• Reference divergence script by eemani123: • This version by tagstrading 2025 adds: improved pivot engine, RSIpivot gating, normalized strength + optional volume gate, delayed entries, rigid SL and activatable trailing, and a gap-free RSI gradient.