EURUSD - Longs Today
📉 How This Trade Could Have Played Out – EURUSD, 15min Chart
This chart demonstrates a textbook example of how to use the ELFIEDT RSI + 3SD Reversion Strategy with additional RSI divergence to identify a high-probability reversal setup.
🟢 What Happened Here:
✅ Buy Signal Triggered
The script printed a green "UP" signal as price dipped sharply — closing beyond the lower volatility band with momentum in oversold territory and a spike in volume. This marked the initial mean reversion opportunity.
📉 RSI Divergence Formed
Just after the price made a lower low, the RSI formed a higher low — classic bullish divergence, showing underlying strength even as price dropped. This added confluence to the signal.
💡 Divergence-Based Entry Zone
With price recovering above the signal bar and RSI breaking upward, traders could use this divergence as a secondary confirmation entry — improving timing and confidence.
📈 Momentum Followed Through
After the signal and confirmation, price reversed strongly upward with a clear multi-candle move, offering multiple reward opportunities depending on your exit style.
✅ How to Trade It (Step-by-Step)
Wait for a signal label (green/red) from the script — this marks a statistically stretched price condition with volume support.
Add the RSI indicator to your chart.
Watch for divergence (price making a new low, but RSI not confirming) near the signal — this gives you a stronger reason to enter.
Look for a reversal candle (like a bullish engulfing, pin bar, or inside bar) for clean entry timing.
Use the previous low as a stop and target a 1:2 or better reward-risk ratio based on price structure.
🔁 Pro Tip: Top-Down Boost
This exact signal is even more powerful if a similar setup appears on the 1-hour and 5-minute charts around the same area.
✅ When multiple timeframes agree, it’s a higher-probability zone to enter.
🧠 This approach blends statistics, momentum, and price action — giving you structure and flexibility as a trader.
