RSI Divergence trading system (Long & Short, Timed Exit) by Eugene

RSI divergence trading system, long+short with timed exit

 

This system detects and trades bullish and bearish RSI divergences. A bullish RSI divergence occurs when price sets a lowest low but the indicator fails to confirm the new low and turns up (vice versa for bearish divergences).

It's possible to tune the following inputs:

  • "Highest high / Lowest low": the highest high / lowest low of the price that is diverging with the RSI
  • "Peak/Trough RSI": RSI threshold for setting the 1st price peak/trough (the 2nd one should be below for bearish and above for bullish divergences)
  • "Distance": aka proximity i.e. the number of bars between peaks/troughs for the divergence to be valid
  • "Exit after": exit trade after fixed number of bars
Author: Eugene
Category: Divergences
Creation Date: 12/30/2011
Licence: Freeware
Availability: Globally
Instructions for Script Download
  1. In Wealth-Lab client software, open the Strategy Explorer (Ctrl+O)
  2. Click the "Download..." button
  3. Click "Begin Download"