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RSI divergence - nice on GBPUSD M1

Posted: Thu Jul 03, 2008 9:44 am
by alichambers

I'm always asking questions so thought I'd contribute something I found works quite well and is quite reliable. :D

It's not new - it's RSI 8 divergence, and it's on the GBPUSD M1 chart - see below.


Look for lower lows or similar lows in price, but higher lows on the RSI (in a down trend) - vice-versa for long trends.

Then trade in opposite direction to the trend.

The best signals seem to come from when the RSI first reaches above/below 30/70 mark, then fails to reach the second time.

These are countertrend trades, so keep a close eye on them. However, often they are good for 10 pips or more.

TRO: Anyway of coding this into an indicator with your amazing coding skills?