RSI 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. Only when the first pivot is outside 30–70: RSI below 30 for a long (oversold), above 70 for a short (overbought).
4. Long on bullish divergence (price lower low, oscillator higher low); short on bearish.
5. Stop-loss beyond the last pivot by 0.5 × ATR(14).
6. Take-profit at 2 R.
7. Exit on the close of bar 30 if neither level is hit.
8. An opposite signal closes the trade at the next open and reverses.
9. If stop and target are both touched in one candle, the stop counts.
10. Fees 0.1% per side, slippage 0.05% on market fills.

• Treating "RSI below 30" as a buy signal on its own: oversold is a state, not a trigger. The divergence and its confirmation are the trigger.
• Checking the zone on the second pivot: by definition the second RSI low is higher, so it often is already back above 30. The rule looks at the first one.
• Reading too much into a handful of trades: a stricter filter means a smaller sample — check the trade count before the win rate.

No open position on the last closed candle.