RESEARCH FRAMEWORK
RSI divergence reversal
Tests whether a mismatch between price and RSI swings adds value after exhaustion.
Only the measurements the rule needs
RSIObjective pivotsATR
Conditions before an entry exists
- Pivot algorithm is fixed
- Price makes a new extreme
- RSI fails by a declared minimum amount
ENTRY
Only after a price-based structural confirmation following the divergence.
STOP
Beyond the final price extreme.
EXIT
Fixed R or return to a structural mean.
DO NOT TRADE
Unconfirmed divergence in persistent trends and hand-drawn pivot selection.
What has to happen before capital is at risk
1Eliminate repainting pivots
2Record hidden and regular separately
3Use a no-divergence control
4Report signal delay
Report gross and net results, the full eligible sample, maximum drawdown, trade distribution and any rule changes. Then repeat on data that did not influence the design.
Use the same protocol every time.
The CSV test plan records eligibility, costs, execution, outcome and rule adherence without turning an example into a promise.
Download test-plan CSV ↓