Been watching RSI divergences on EUR/USD lately and wondering if they’re actually reliable entry signals.
Sometimes they work perfectly, other times price just keeps falling despite the divergence showing up.
What’s your experience with trading these patterns?
Works about 60 percent of the time in ranging markets
Divergence signals take patience. I pair them with moving averages to get better entries. This video explains the strategy well.
I still keep position sizes small though.
Divergence works best as part of a bigger strategy. Don’t chase every signal or you’ll get burned. Stick to longer timeframes like 4-hour charts since they’re more reliable than 15-minute ones. Always check the daily trend first because divergences rarely work against it. I only trade divergence signals when they line up with major support or resistance levels. Skip this step and your success rate tanks.
RSI divergence is better near support levels. Just don’t depend on it by itself because false signals happen.
RSI divergence is more of a warning signal than a clear entry point.
I wait for further confirmation like a reversal candle or a trendline break before acting.
Using divergence alone can lead to losses, especially in strong trends. Momentum can act strangely longer than expected.
Been backtesting RSI divergence on EUR/USD for months. Works way better when you get volume confirmation.
Timing’s everything - I wait for price to break a minor swing high/low before jumping in. That confirms the reversal.
Stick to 1-hour charts mostly. Hidden divergences crush regular ones - I’m hitting 65% vs 45%. Regular divergences get wrecked in trending markets.
Avoid trading divergences during major news. Price goes crazy and nothing works reliably.