Enhanced RSI Divergence Strategy

Core Strategy Logic
1. Higher Timeframe (HTF) Context

Purpose: Align with the dominant trend (e.g., "bullish made new highs").

Tools:

Price action (breakouts, key support/resistance levels).

Trend confirmation (e.g., 50EMA on 1H/4H charts).

2. Lower Timeframe (LTF) Entry Triggers

Momentum Breakdown (Short Example):

Signal: Price makes "high of the day" + reversal candlestick (e.g., bearish engulfing).

Confirmation: RSI divergence or volume spike.

Support Reversion (Long/Short):

Signal: False breakout (e.g., "faked bullish breakout and reversed").

Confirmation: Wick rejection at HTF support/resistance.

3. Trade Execution

Entry: On 5-minute close after trigger.

Stop Loss (SL):

Current: Fixed ticks (e.g., 7-13 pts) → Issue: Too tight for US100 volatility.

Improved: 1.5x ATR(14) or beyond recent swing high/low.

Take Profit (TP):

Current: Fixed price levels (e.g., 21523).

Improved: Tiered exits (50% at 1:1 RR, trail rest).

4. Position Sizing

Fixed contracts (e.g., 10 per trade).

Better Approach: Risk 1-2% of capital per trade (adjust size based on SL distance).

Key Strengths
HTF+LTF Alignment: Avoids counter-trend traps by trading in HTF direction.

Flexibility: Adapts to momentum and mean-reversion setups.

Journaling: Tracks emotions/mistakes (critical for improvement).