RSI Divergence Indicator strategy

Script from: TradingViewSwingPrice actionTrend followingMomentumReversalDivergence

The RSI Divergence Indicator strategy uses an RSI with a period setting of 5. Traders enter long positions when Bullish or Hidden Bullish divergence is detected. Positions are closed once RSI exceeds 75 or a bearish signal emerges. Enhancements include a pyramiding option, a customizable take-profit level, and a trailing stop-loss parameter based on ATR or percentage, tailoring exits to market volatility.

Audit verdict

Not rankedUpdated Jul 28, 2026

No reliable edge found

Its average result can't be told apart from chance, so it stays out of our rankings. The script itself passed our repainting audit.

634backtests3 markets

42robust scoreranked median 52

0.35p-valueranked median 0.24

0/80pass quality gatebacktests >15 trades

Audit details

How we decide whether a strategy enters our rankings. Read the methodology →

✓

Repainting audit

8 of 8 checks passed.

✓

Script availability

Open-source, still published on TradingView.

Statistical edge

Average t-statistic 1.48 (p = 0.35), below the median of 1.98 (p = 0.24) for ranked strategies.

Quality gate

None of the 80 backtests with more than 15 trades passes our quality gate.

Robust score

42/100, below the median of 52 for ranked strategies.

How its evidence compares

The t-statistic measures how far the average result sits from zero relative to its noise. Below about 2, it is within what random entries produce.

1.48

avg. t-statistic

1.98

median, ranked strategies

Best 5 of 634 backtests

Shown for transparency.

Symbol	Timeframe	Net profit	Profit factor	Trades	Max drawdown
Meta Platforms, Inc. NASDAQ:META	1H	+9,615%	4.29	289	77%
Warner Bros. Discovery, Inc. - Series A NASDAQ:WBD	1H	+3,595%	2.10	250	49%
Meta Platforms, Inc. NASDAQ:META	2H	+3,459%	1.42	204	67%
Alphabet Inc. NASDAQ:GOOG	1H	+2,574%	1.97	285	56%
General Motors Company NYSE:GM	2H	+2,382%	1.28	169	74%

⚠Selected after the fact: these are the best 5 of 634 runs, not what to expect from this strategy.

Is RSI Divergence Indicator strategy profitable?

Not reliably, based on our tests. Across 634 backtests, 0 of 80 with more than 15 trades pass our quality gate. The best result is +9,615% on Meta Platforms, Inc. (1H, 289 trades). On average, its results are statistically indistinguishable from chance (p = 0.35).

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View backtests →Passed our auditRSI Divergence StrategyDivergence · Momentum

86/100robust score

9/85backtests pass quality gate

View backtests →

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