RSI Divergence Swing Trading Strategy — 65% Win Rate Over 200+ Trades
r/SwingTradingstocksSwing (daily chart, 3-8 days)by reddit_community
RSI divergence swing strategy. Bullish divergence at support + trendline break = entry. 65% win rate over 200+ trades. 3-8 day average hold. Daily chart on stocks and ETFs.
ENTRY RULES
RSI(14) shows bullish divergence at key support level | Price confirms with trendline break above | Volume increases on breakout day | Stock must be above 200-day SMA (long-term uptrend)
EXIT RULES
Take profit at next major resistance level | Stop loss below the divergence low | Trail stop using 10-day EMA | Close if RSI reaches overbought (>70) without further price momentum
INDICATORS
RSITrendlineVolumeSMASupport/Resistance
ORIGINAL POST
340
r/SwingTradingposted by reddit_community
RSI Divergence Swing Trading Strategy — 65% Win Rate Over 200+ Trades
Swing trading strategy based on RSI divergence combined with trendline breaks. Look for bullish divergence (price makes lower low, RSI makes higher low) at key support. Enter when trendline breaks to the upside. Backtested over 200+ trades with 65% win rate. Average hold time 3-8 days. Works on stocks and ETFs with daily chart.
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