Rebound Strategies – Support Bounce with RSI Divergence
- copytradia
- Jul 11
- 18 min read
1. Definition and Objective
The “Bounce on support with RSI divergence” strategy follows a simple technical rebound logic, where the price reacts to a well-defined horizontal support. It relies on a dual condition : a stable chart level, and a signal of decreasing downward pressure observed through the RSI indicator.
The setup appears when the price retests an already identified support level, sometimes forming a new local low, but the RSI (14) does not confirm this move. Instead, it forms a slightly higher low than the previous one. This discrepancy between the price movement and the RSI behavior is called a bullish divergence. It indicates that selling pressure is weakening and that a rebound is possible.
The entry is only validated if the price closes above the support on a M15 or H1 candle, and if the RSI divergence is clear and unambiguous. There is no need to wait for a specific candle shape (engulfing, hammer, etc.) : it is the holding of the level, combined with the divergence, that triggers the trade.
The strategy relies on three precise elements :
- A horizontal support tested at least twice, without a clear breakdown ;
- A new lower low in price that is not confirmed by a new lower low in the RSI ;
- A candle closing above the support, validating the holding of the level.
This approach works well on M15 to H1 timeframes, particularly during quiet phases or in the absence of a clear trend. It offers a clean entry, limited risk, and a structured framework for copy trading, especially through conditional alerts or reproducible manual signals.
2. Entry Conditions and Required Tools
A. Technical context prior to entry
Before any position is taken, it is essential to ensure that the price is evolving in a neutral environment, with no active trend, and that the support under observation is clearly visible across multiple analytical timeframes.
The support must be visible and stable on two analytical levels :
On the signal timeframe (M15 to H1), it must be manually drawn from two clean contacts, without overlaps or structural breakdowns.
On the context timeframe (H1 to H4), it must not have been recently broken by a closing candle beneath the level, and the long moving averages (EMA 50/200) must remain flat or close to one another, with no visible slope or progressive separation.
1. Clear horizontal support on the signal timeframe (M15 to H1)
The level must have been tested at least twice without a clear breakdown.
Candle bodies must remain above the support ; wicks may temporarily cross it but must remain limited.
The line should be drawn using the Horizontal Ray tool, based on two or three clean contact points, without chaotic structure or overlapping candles.
2. Bullish RSI (14) divergence on the same timeframe
A divergence is present when the price forms a new lower low, but the RSI creates a higher low than the previous one.
This reading must be made in line mode, on the same timeframe as the signal.
The two lows (price and RSI) must belong to the same market sequence, spaced 5 to 20 candles apart, depending on volatility.
3. Neutral context on the higher timeframe (H1 to H4)
The market must not present a clear trend.
The EMA 50 and EMA 200 must remain flat or close to each other, with no visible slope or progressive divergence.
No ongoing sequence of higher highs or lower lows should be active.
The support must not have been invalidated by a closing candle on this timeframe.
4. Absence of short-term fundamental catalyst
No macroeconomic, regulatory or project-specific event should be expected within the upcoming hours, at the moment the setup is forming.
The environment must remain stable, with no major announcement likely to invalidate the technical reading.
It is recommended to check an economic calendar and project-related news (via CoinMarketCap, Coindesk or CopyTradia.com) before any execution.
B. Entry signal
Entry is triggered only when the following three elements are present in the same price sequence :
The horizontal support is respected (no close below the level)
A clear RSI divergence is identifiable
The price closes above the support with a bullish candle
It is neither the exact shape of the candle nor the presence of a wick that triggers the entry, but rather the combined validation of the level and the divergence.
Valid configurations :
Bullish candle close immediately after a local lower low in price
RSI (14) bouncing, forming a higher low than the previous one
Small bullish engulfing pattern, or a consolidation sequence followed by a bullish candle
C. Additional signals (optional but strengthening)
Element | Effect | Reading method |
Volume above 20-period SMA | Confirms buyer return without excess | Simple reading on histogram |
RSI above 35 after the low | Reduces the risk of prolonged oversold | Stabilised indicator |
Bullish engulfing candle | Adds visual confirmation | Recommended for semi-automated use |
These elements are not mandatory, but they can serve as additional filters for cautious traders or systems using conditional alert-based triggers.
D. Recommended timeframes
Usage | Suggested timeframe |
Entry signal | M15 to H1 |
Context confirmation | H1 to H4 |
The H1 unit often plays a pivotal role : it helps confirm support stability while ensuring good responsiveness to the signal.
E. Recommended tools
Tool type | Usage |
RSI (14) | Displayed in line mode on the same timeframe as the signal, to spot divergences |
Horizontal Ray | Manual tracing of support, based on at least two clean contact points |
EMA 50 / EMA 200 | On the context timeframe (H1 to H4) to validate trend neutrality |
Volume + SMA 20 | Verifies buyer return without excess volatility |
TradingView Screener | Filters assets with no strong direction (use “Neutral” or equivalent) |
Custom alerts | Price alert at support level + RSI condition below 40 then rebound |
3. Exit Conditions
A. Overview
Trade management is a key component of this strategy. It aims to frame the position rigorously from the moment the divergence signal appears, taking into account the often localized nature of the expected rebound. Since RSI divergence allows for early entry but does not guarantee a full trend reversal, exit must remain disciplined, structured, and proportional to the movement’s scope.
Two pillars guide this management :
The Take Profit, set on a realistic short-term reaction zone or managed dynamically if the move extends
The Stop Loss, placed in such a way as to invalidate the setup in case of breakdown, without tolerating a prolonged breach of support
B. Take Profit – Two compatible methods
1. Fixed TP on a local resistance level
The most direct option is to place the target on a short-term visible technical zone, such as a recent high or a previously observed reaction level. This type of TP works especially well in neutral contexts, where the divergence signals only a relief bounce.
Technical criteria :
Local high reached before the last drop
Previous rejection zone or pivot identifiable across 10 to 30 candles
Secondary oblique or horizontal level from a recent congestion area
Recommended on M15 to H1, with TP typically between +1 % and +2 %, depending on the asset’s volatility
Advantage : quick execution, suitable for scalping or semi-automated systemsDrawback : does not capture extended moves, even if the bounce continues
2. Two-step TP with dynamic trailing (TP1 + trailing)
This hybrid method allows part of the trade to be secured, while letting the rest run if the market continues beyond the initial target.
TP1 : placed on a clear intermediate zone (breathing area or visual compression point). Secures 30 % to 50 % of the position
TP2 : left open with trailing activated as soon as price exceeds +1 %
Two trailing options available :
Option | Detail |
EMA 9 (signal) | Exit triggered as soon as a candle closes below EMA 9 |
ATR × 1.5 | Volatility-based trailing using average true range (ATR) |
Recommended for assets with moderate inertia or irregular market structures
Advantage : captures extended moves while securing part of the gains
Drawback : requires ongoing monitoring or a conditional alert system
C. Stop Loss – Two technical placements
1. Tight SL under the wick of the divergence low
The Stop Loss is placed just below the lowest point reached during the RSI divergence. This level marks the initial reversal zone of selling pressure. Any close beneath this wick invalidates the signal.
Ideal for M15 in clean, reactive markets with low volatility
Advantage : excellent risk/reward ratio, strict capital managementDrawback : vulnerable to false rejections or imprecise tests
2. Wider SL under the entire support structure
When the support area has multiple recent wicks or a broader base, the SL must be placed beneath the entire structure to allow for partial retests without premature exit.
Recommended on H1 or for assets with irregular behavior
Advantage : better resistance to market noiseDrawback : more moderate R:R ratio, slightly longer exposure
D. Practical guidelines by timeframe
Signal timeframe | Recommended Stop Loss | Suggested Take Profit |
M15 | Below the wick of the lowest divergence | Quick TP on local resistance or TP1 + trailing via EMA 9 |
H1 | Below the full worked support structure | Gradual TP with trailing based on EMA 9 or ATR × 1.5 after TP1 |
This breakdown allows the strategy to be adjusted to real market dynamics.
On M15, speed of execution is key : TP is short, SL is tightOn H1, structural robustness takes priority : levels are wider, and the trade may last several candles
4. Recommended Indicators and TradingView Tools
The Rebound on Support with RSI Divergence strategy is based on the joint detection of a stable horizontal support and a weakening of selling momentum. It therefore requires a structured chart environment, a disciplined reading of the RSI, and a set of reliable technical tools. TradingView provides all the necessary resources to apply this strategy coherently, reproducibly, and in a format compatible with semi-automated monitoring.
A. Main Indicator : RSI (14)
Timeframe used : M15 to H1 (same as the signal timeframe)
Recommended display : continuous line (default display on TradingView), to better track RSI evolution
How to use the RSI in this strategy : On the RSI chart, identify two consecutive low points. These are moments when the RSI line drops, reaches a minimum, then rises again. These points form visible dips, similar to the base of a “V”.
What to look for :
➤ The second RSI low must be higher than the first (resisting the downward move)
➤ Meanwhile, price makes a new local low
This divergence between a “stronger” RSI and a price that “keeps dropping” forms a bullish divergence.
It signals a weakening of the bearish move and prepares for a potential technical rebound.
The two RSI lows must be spaced 5 to 20 candles apart, depending on the asset’s volatility.This reading helps detect a loss of selling strength near a key support. No absolute threshold (30, 40...) is required : only the dip shape and its relative position matter.
B. Chart Tool : Horizontal Ray Tool
Function :
Draw the support level on the signal timeframe
Technical requirement :
at least two clean contact points without structural breach
Usage :
The line must remain stable, without excessive overlaps or erratic clustering
It serves as the visual base of the setup and must remain visible throughout the divergence formation
Automated tools (e.g. LuxAlgo SR Levels) may be used for reference, but the level must always be validated manually
C. Contextual Indicators : EMA 50 and EMA 200
Timeframe used : H1 to H4 (for context only)
Function : Confirm the market's neutrality
Criteria :
Both EMAs must remain flat or intertwined, without clear slope or widening separation
Any sustained incline in the same direction invalidates the strategy
These curves do not contribute to the signal but filter out incompatible market conditions
D. Volume (with 20-period moving average)
Timeframe : M15 to H1 (same as the signal)
Reading :
Volume should remain moderate during divergence formation
A temporary spike at the time of the rebound may reinforce the signal but is not required
The TradingView native histogram, combined with a 20-period SMA, enables fast reading
The goal is to validate a healthy recovery, without volatility excess
E. TradingView Screener (contextual pre-filter)
Filtering timeframes : H1 and H4
Recommended filters :
“Neutral” or “Sideways” recommendation
Absence of strong trend on indicators such as Supertrend, MACD, etc.
The screener helps focus the analysis on compatible pairs and avoid false setups due to trend breakouts.
F. Custom RSI + Support Level Alerts
It is possible to configure in TradingView a combination of alerts to monitor multiple assets automatically :
Price alert at the contact of the manually drawn horizontal support
RSI alert triggered when the RSI drops below a defined threshold (e.g. < 40), initiating divergence monitoring
Entry remains manual and requires visual confirmation of the divergence. This system provides an effective semi-automated framework, particularly useful for manual copy trading.
G. Recommended Procedure
Draw the horizontal support on M15 or H1, from two clean contact points
Set a price alert at this support
Visually monitor any sequence where price forms a new low
Check simultaneously if the RSI forms a higher low than the previous
Confirm the context's neutrality using EMAs on H1/H4
Validate entry only if :
The support holds at candle close
The RSI divergence is clear
And (optionally) a bullish recovery candle appears
5. Selection of Suitable Pairs and Screening Criteria
The Rebound on Support with RSI Divergence strategy can only be applied effectively to assets that display sufficient technical stability. The combined analysis of a horizontal support and a bullish RSI divergence requires a neutral market environment, a clean price structure, and consistent indicator behavior. Assets that are too noisy, excessively volatile, or driven by external events must be systematically excluded. The selection is based on three axes : chart clarity, RSI responsiveness, and contextual neutrality.
A. Compatible Asset Profiles
Compatible assets share several essential technical characteristics :
Technical Criterion | Justification |
Clear horizontal support | The level must have been tested at least twice without a structural breach, on M15 or H1 |
Structural neutrality | No active trend on H1/H4, confirmed by flat or cross-aligned EMA 50/200 |
Responsive RSI | RSI (14) forms clean lows, visually exploitable for divergence detection |
Stable to moderate volume | Candles near the support should show consistent activity, without excess or abrupt drops |
These conditions ensure a clean interaction between price and support, while maintaining reliable RSI readings. The price structure must remain legible, without chaotic overlaps or erratic candles.
B. Recommended Screening Filters
To automate or accelerate pair selection, several simple filters can be configured in TradingView or external tools.
Filter | Recommended Parameter | Primary Objective |
CoinMarketCap ranking | Rank 15 to 80 | Select assets that are liquid but not overly speculative |
Consistent 24h volume | Stable daily volume, no major spikes or drops | Ensure sustained but non-hyped trading activity |
Flat EMA 50/200 on H1/H4 | Slope below ±5° | Confirm structural neutrality |
RSI (14) stabilized (H1) | Between 35 and 50 | Avoid extreme or saturated zones |
Clear support zone | Minimum 2 visually clean contacts | Confirm an exploitable technical structure |
No short-term fundamental catalyst | No event within ±6h | Avoid external bias and forced breakdowns |
These filters ensure that the technical environment is clean enough for an RSI divergence to be meaningful. They may be used in a custom screener or applied manually to each pair.
C. Profiles to Exclude
Some pairs behave in ways that are incompatible with the logic of this strategy. They must be systematically avoided, especially in semi-automated or copy trading frameworks.
Highly volatile or illiquid pairs➤ They produce unpredictable price movements, long wicks, or sharp support breaks, making divergences unreliable.
Event-driven or speculative tokens➤ They react more to rumors, tweets, or announcements than to technical levels, which invalidates the joint reading of support and RSI.
Top 5 CoinMarketCap assets in active trends➤ Even RSI divergences are often ignored in these pairs due to dominant trend momentum, making rebounds hard to exploit.
D. Tools to Automate Filtering
For traders monitoring multiple assets at once, simple tools can help establish a coherent technical watchlist.
Tool | Function |
TradingView Screener | Initial filtering using “Neutral” or “Sideways” context on H1/H4 |
Watchlist with RSI < 40 | Visual tracking of assets approaching a potential divergence |
Multi-asset RSI indicator | Combined display of RSI (14) across several pairs |
Price + RSI + volume alert | Semi-automated detection of valid configurations |
These tools never replace manual chart validation but provide an efficient first-pass triage of setups to monitor.
E. CopyTradia Recommendation
To ensure reproducible and reliable execution within a copy trading environment, the following conditions must always be met :
RSI 14 displayed as a line, with manual divergence detection between two lows spaced 5 to 20 candles apart on M15 or H1
Horizontal support manually drawn (Horizontal Ray tool), with a minimum of two clean contact points
Neutral context on H1 or H4, validated by flat or cross-aligned EMA 50/200 with no visible slope
Coherent volume at the time of the support test, around or slightly above the 20-period SMA
No macro or project-related event, verified through CoinMarketCap or CopyTradia.com
Combined alerts : price touching the support + RSI under 40 + possible bullish close
At CopyTradia.com, we consider this configuration an excellent framework for assisted rebounds, combining clarity, chart stability, and technical standardization. It is suitable for both manual traders and semi-automated or community-driven systems.
6. Case Study – ATOM/USDC
To illustrate the practical implementation of this strategy, we present a fictional example based on the ATOM/USDC pair, an asset ranked around 40 on CoinMarketCap. ATOM is known for its clear technical structure, moderate volatility, and frequent reactivity to horizontal levels. The simulated setup below meets all criteria defined in the strategy : confirmed support, readable RSI divergence, contextual neutrality, and absence of any short-term fundamental catalyst.
A. Technical Framework
Element | Detail |
Signal timeframe | M15 |
Context timeframe | H1 |
Identified support | 7.58 USDC |
EMA context (H1) | EMA 50 and EMA 200 flat, crossing horizontally |
RSI (14) (M15) | Clear bullish divergence present |
On the context timeframe (H1), EMA 50 and EMA 200 are flat and close together, without noticeable slope or recent directional crossing. The price evolves around a stable median zone, with no identifiable bullish or bearish trend. On M15, a horizontal support at 7.58 USDC has been validated by two clean contacts over the past few hours.
B. Signal Trigger
The price tests the 7.58 USDC support for the third time. This time, it prints a new local low at 7.55 USDC. Meanwhile, the RSI (14), which had dropped to 33 during the previous support test, now forms a higher low at 37. This mismatch clearly constitutes a bullish divergence between price action and momentum.
The next candle closes at 7.60 USDC, above the support, with a small clean bullish body and no excessive wick. The volume recorded on this candle slightly exceeds the 20-period average, indicating renewed buyer interest without excess.
This sequence confirms a complete setup : preserved support, clear RSI divergence, and a closing candle validating the level.
C. Trade Parameters
Element | Value |
Entry | 7.60 USDC (at the close of the bullish candle post-divergence) |
Stop Loss | 7.51 USDC (below the wick of the local low) |
Take Profit 1 | 7.70 USDC (intermediate breathing zone) |
Take Profit 2 | 7.86 USDC (upper technical resistance) |
Trailing | Activated at +1 %, based on EMA 9 (M15) |
The trade management combines early profit securing at a mid-range level and dynamic continuation with trailing. This approach allows full participation in the move while limiting risk.
D. Simulated Progression
TP1 is reached 40 minutes after entry, with a steady climb toward the intermediate zone. The Stop Loss is moved to break-even as soon as the first target is hit. The price then climbs to 7.84 USDC before pulling back slightly. TP2 is triggered by the trailing at 7.84 USDC after a drop below EMA 9.
The support is never retested after the signal, and no major retracement disrupts the move.
E. Estimated Result
Indicator | Approximate Value |
Net estimated gain | +2.5 % |
Trade duration | Around 1h10 |
Final R:R ratio | ≈ 2.7:1 |
F. Key Takeaways
This scenario illustrates a clean execution of the strategy in a stable lateral market, with a clear, disciplined signal that meets all predefined criteria.
The horizontal support is validated by multiple visual touches
The RSI divergence is clear, moderate, and occurs in a relevant zone
The close above the level and slightly rising volume confirm the entry’s reliability
The two-step management (TP1 + trailing) maximizes return while limiting exposure
This fictional case demonstrates that the combination of a clean divergence signal and a well-defined support structure enables the exploitation of controlled technical rebounds, fully standardizable within a structured copy trading framework.
7. Adaptation to Copy Trading
The RSI Divergence Bounce on Support strategy fits naturally into a structured copy trading environment, whether manual, semi-automated via alerts, or fully automated through webhooks. It is based on a stable combined signal, a clear management structure, and an entry at candle close that accommodates delayed execution. Its price/momentum logic enables a pedagogical and reliable interpretation, reproducible by both human operators and technical systems.
A. Readable and Standardizable Combined Signal
The setup relies on a triple graphical condition :
A manually identified horizontal support, tested at least twice without structural breakdown
A bullish RSI divergence, with the second RSI low higher than the previous one, despite a new local low in price
A bullish closing candle above the support, confirming the preservation of the level
This configuration can be visually detected, shared via screenshot, or encoded into a conditional alert. It does not rely on any complex pattern, which makes it perfectly suited for multi-format copy trading.
B. Entry at Candle Close, Compatible with Execution Delay
The entry is always triggered at the close of the candle that validates both the RSI divergence and the maintenance of the support. This timing ensures :
Sufficient time to transmit the signal in a community channel or via webhook
Tolerance to an execution delay of a few seconds to several minutes
Stability of the setup, as long as the support is not structurally broken
This feature makes the strategy usable in asynchronous environments across multiple accounts or monitoring platforms.
C. Transposable Stop Loss and Take Profit Levels
Level | Placement Rule |
Stop Loss | Below the wick of the last low or below the full support structure |
TP1 | Visual intermediate zone or minor local pivot |
TP2 | Activated at +1 %, dynamically managed via EMA 9 or ATR × 1.5 |
These levels are fixed, graphically identifiable, and easily transposable :
They can be shared in a structured message (entry, SL, TP)
Integrated into a bot template or shared tracking table
Encoded into a semi-automated logic compatible with most platforms
D. Automation via Custom Alerts
The strategy can be monitored and executed in a semi-automated manner using TradingView conditional alerts. The logic relies on four modular conditions :
RSI (14) bouncing, with a second low higher than the first, below the 40 threshold
Price contact with a manually validated horizontal support
Bullish candle closing above the support level
(Optional) Volume > 20-period moving average on the signal timeframe
These conditions can be integrated into a dedicated Pine Script or simulated using two combined alerts. The triggered alert can then be connected to :
A webhook to a copy trading bot (3Commas, Wunderbit, etc.)
A push notification for assisted manual copying
A private post in a CopyTradia channel or community forum
E. Compatibility with Copy Trading Formats
Execution Format | Compatibility Level |
Manual copy trading (forum, Discord) | Excellent : clear signal, easily shareable with screenshot |
Semi-automated system (TradingView) | Very good : clear conditions, reliable alerts |
Automated webhook (3Commas, Wunderbit) | Compatible : divergence + level = easy-to-encode logic |
Conditional DCA bots | Suitable : fixed SL/TP levels, standardizable EMA 9 trailing |
This extended compatibility allows the RSI Divergence Bounce on Support strategy to be deployed across various trader profiles, from manual followers to advanced bot users.
It fully aligns with the principles of CopyTradia.com : reproducible signals, controlled levels, and pedagogical clarity for reliable collective deployment.
8. Advantages and Limitations
The RSI Divergence Bounce on Support strategy is based on a cross-analysis of price and momentum, combining the stability of a horizontal level with the detection of technical weakening in selling pressure. It offers a clear pedagogical structure, an objectifiable signal, and disciplined execution, suitable for both manual and semi-automated environments. Its effectiveness depends on the quality of the support, the neutrality of the context, and the readability of the divergence. Below are its main strengths and operational limits to consider.
Advantages
1. Readable and formalizable hybrid signal
The strategy relies on two technical anchors : a manually identified horizontal support and a bullish RSI (14) divergence, observable in line mode. This type of configuration can be detected visually or encoded into an alert system. It is a solid pedagogical signal, reproducible among traders or within a copy trading environment.
2. Good tolerance to delayed execution
The entry is triggered at the close of the candle that validates the divergence, allowing for a slight delay between the signal and execution. As long as the support is not broken and the RSI maintains its structure, the setup remains valid. This measured timing is well-suited for community signals, conditional alerts, or delayed manual copying.
3. Frequently favorable risk/reward ratio
The Stop Loss is placed below the wick of the last low, while the Take Profit may target a median zone, a previous pivot, or a resistance level. In well-defined neutral contexts, this setup allows for risk/reward ratios above 2 :1 while maintaining strict risk control.
4. Compatible with multiple execution styles
The setup can be monitored and confirmed manually, shared via visual capture, or integrated into semi-automated routines using RSI + price combination alerts. This execution flexibility makes it suitable for discretionary trading, conditional DCA bots, or webhook-driven signal systems.
5. Applicable on standard intraday timeframes
The strategy works optimally on M15, M30, and H1 timeframes. These units offer a good balance between setup frequency, structure readability, and RSI clarity. It can be used in extended technical scalping or disciplined day trading, depending on the trader’s profile.
Limitations
1. Immediate invalidation if the support is broken
The strategy becomes invalid if the horizontal support is broken, either by a clean candle close below or a surge in selling volume. An RSI divergence alone is not enough to compensate for a structural break. In this case, the trade should be avoided or exited quickly, without anticipating a rebound.
2. Risk of weak or poorly formed divergence
RSI divergences can sometimes be shallow or misaligned within the structure. If the lows are too close together, if the RSI shows unstable swings without clear troughs, or if the support zone is not properly validated, the signal loses reliability. Rigorous visual filtering is essential before each entry.
3. Less effective in directional phases
When the market is in a strong trend (up or down), the RSI may remain in extreme zones without producing an exploitable divergence. In these cases, the price moves through supports without reacting, and the strategy becomes ineffective. It must be temporarily set aside in favor of continuation setups.
4. Low performance on disorganized assets
Pairs with chaotic structures, numerous wicks, gaps, or ill-defined congestion zones do not allow for clean support readings or reliable divergence detection. These profiles often produce false or late signals and should be excluded from the strategy's scope.
5. Requires high-quality manual validation
Even though some conditions can be automated, RSI divergence remains a contextual reading that requires graphic confirmation. It cannot be used fully autonomously without a high risk of false positives. This requirement limits its application in fully automated bots but ensures a higher success rate in disciplined executions.
This strategy is intended for structured traders capable of combining a technical reading of horizontal levels with a rigorous analysis of momentum. Its value lies in the quality of the neutral environment and the clarity of the signal, two key criteria for reliable integration into a manual setup or copy trading logic.
9. Conclusion
The RSI Divergence Bounce on Support strategy is a rigorous technical approach designed to capture short-term market reversals in a neutral environment, without relying on a full range structure or a rare pattern. It follows a structured logic : identifying weakening selling momentum near a validated horizontal support, using a clearly formed RSI divergence confirmed by a clean candle close.
Its effectiveness is built on three essential pillars :
a clearly defined and respected horizontal support, tested at least twice without structural breach
a bullish RSI divergence between two price lows, visually readable without excessive noise
a closing candle above the support, confirming level preservation and momentum transition
This configuration enables early entries while maintaining strict discipline, with a Stop Loss placed below the structure and a Take Profit calibrated to the rebound’s dynamic. The strategy is suited to a wide range of technically stable assets ranked between 15 and 80 on CoinMarketCap, and performs efficiently on M15 to H1 timeframes, with contextual validation on H1 or H4.
Its visual format, closing logic, and framed levels make it fully compatible with copy trading formats, whether for manual sharing, conditional alerts, or webhook-based automation. It can be integrated into a semi-automated system without compromising its clarity or structural reliability.
At CopyTradia.com, this strategy fully reflects our philosophy : to offer setups that are readable, reproducible, and grounded in a disciplined interpretation of market behavior. It is a reliable tool for operating in technical pullback phases, while limiting exposure to weak signals or premature breakdowns.
Used with method, it fits into a trader’s structured progression logic : observe, understand, validate, execute.