RSI Triple Divergence from Extreme Zone

1. Signal on the close of a candle, entry at the open of the next one.
2. Regular divergence between price and RSI(14): pivots 5/5 bars, 5–60 bars apart. The signal fires when the last pivot is confirmed, 5 bars after it.
3. Triple divergence: three consecutive pivots, each pair diverging — price makes two lower lows (higher highs for shorts) while the oscillator makes two higher lows (lower highs). The signal fires when the third pivot is confirmed.
4. Only when the first pivot is outside 30–70: RSI below 30 for a long (oversold), above 70 for a short (overbought).
5. Long on bullish divergence (price lower low, oscillator higher low); short on bearish.
6. Stop-loss beyond the last pivot by 0.5 × ATR(14).
7. Take-profit at 2 R.
8. Exit on the close of bar 30 if neither level is hit.
9. An opposite signal closes the trade at the next open and reverses.
10. If stop and target are both touched in one candle, the stop counts.
11. Fees 0.1% per side, slippage 0.05% on market fills.

• Stacking filters until the backtest looks good: every extra condition removes trades and adds room for luck. Here the filters are fixed in advance and shown with the trade count.
• Ignoring timing: the signal comes after the third pivot is confirmed, often far from the extreme.
• Using it alone: with so few signals it is a rare event to watch for, not a system that trades every week.

No open position on the last closed candle.