📉 BTCUSD Reversion Setup – After the Drop
This dual-timeframe view of BTCUSD shows how the ELFIEDT RSI + Reversion Strategy identified an excellent buy opportunity following a sharp selloff — with signals printing on both the 1H and 15min charts, offering strong confluence for a recovery play.
⸻
🟢 Here’s What Happened:
1. High-Volatility Drop Into Oversold Levels
BTC saw an aggressive downward move, likely driven by news or a liquidation event. Price pushed deep below the lower statistical deviation bands, entering a classic mean reversion zone.
2. 1H Timeframe – Strong “UP” Signal
The 1-hour chart printed a clean “UP” signal right after the bottom formed. This confirmed that the move had extended far beyond normal volatility and that RSI was signaling exhaustion.
3. 15min Timeframe – Supporting Signal with Early RSI Recovery
Shortly before the 1H signal, the 15min chart had already printed an “UP” signal of its own — with RSI sharply recovering from deeply oversold conditions. This served as an early entry signal, with the higher timeframe confirming the broader move.
4. Sharp Bounce Followed
After the signals aligned, BTCUSD quickly rallied over $2,000 off the lows, offering a clean and profitable reversion move.
⸻
✅ How to Use This Type of Setup:
• Watch for aggressive price drops or spikes that push outside statistical volatility bands.
• Look for an “UP” or “DOWN” signal on the lower timeframe (15min) for early entry opportunities.
• Then look for confirmation on the higher timeframe (1H) to strengthen your confidence in the trade.
• RSI recovery across both timeframes adds a momentum-based edge to the mean reversion logic.
⸻
🎯 Why This Worked:
This trade worked because multiple signals lined up at once:
• Deep price extension
• Oversold RSI
• Volume-driven spike
• Multi-timeframe signal agreement
This confluence increases the probability of success and helps avoid false entries during volatility.
This dual-timeframe view of BTCUSD shows how the ELFIEDT RSI + Reversion Strategy identified an excellent buy opportunity following a sharp selloff — with signals printing on both the 1H and 15min charts, offering strong confluence for a recovery play.
⸻
🟢 Here’s What Happened:
1. High-Volatility Drop Into Oversold Levels
BTC saw an aggressive downward move, likely driven by news or a liquidation event. Price pushed deep below the lower statistical deviation bands, entering a classic mean reversion zone.
2. 1H Timeframe – Strong “UP” Signal
The 1-hour chart printed a clean “UP” signal right after the bottom formed. This confirmed that the move had extended far beyond normal volatility and that RSI was signaling exhaustion.
3. 15min Timeframe – Supporting Signal with Early RSI Recovery
Shortly before the 1H signal, the 15min chart had already printed an “UP” signal of its own — with RSI sharply recovering from deeply oversold conditions. This served as an early entry signal, with the higher timeframe confirming the broader move.
4. Sharp Bounce Followed
After the signals aligned, BTCUSD quickly rallied over $2,000 off the lows, offering a clean and profitable reversion move.
⸻
✅ How to Use This Type of Setup:
• Watch for aggressive price drops or spikes that push outside statistical volatility bands.
• Look for an “UP” or “DOWN” signal on the lower timeframe (15min) for early entry opportunities.
• Then look for confirmation on the higher timeframe (1H) to strengthen your confidence in the trade.
• RSI recovery across both timeframes adds a momentum-based edge to the mean reversion logic.
⸻
🎯 Why This Worked:
This trade worked because multiple signals lined up at once:
• Deep price extension
• Oversold RSI
• Volume-driven spike
• Multi-timeframe signal agreement
This confluence increases the probability of success and helps avoid false entries during volatility.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Join us to get free access to all indicators we created!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.