📈 EURUSD 4H – From Long to Short: Managing the Full Move
This chart shows the power of the ELFIEDT RSI + Reversion Strategy not only in identifying strong short-term reversion trades but also in guiding traders through longer-term swing positions when holding a trade from exhaustion signal to exhaustion signal.
⸻
🟢 Buy Signal – Early Reversal Opportunity
Back on the left of the chart, the strategy printed an “UP” signal after a heavy selloff:
• Price had broken well below the lower volatility band
• RSI entered deeply oversold territory
• A strong bounce followed, confirming the shift in momentum
This setup offered a great opportunity for position traders to enter early on a larger move — and it played out exceptionally well.
⸻
🔺 Trend Continuation Through Higher Lows
After the buy signal, price continued to climb with higher highs and higher lows, allowing the position to be managed with:
• A trailing stop-loss below swing lows
• Partial profit-taking along the way
• Or simply holding for a strategy-based exit
⸻
🔻 Sell Signal – Opposite Reversion Appears
Eventually, the price topped out after a steep rally, and the strategy printed a clear “DOWN” signal:
• Price had pushed far above the upper deviation band
• RSI signaled overbought exhaustion
• A pullback quickly followed
This offered two strategic options for long-term traders:
1. Close the long position fully, locking in gains from the original buy signal
2. Flip the bias and enter a short reversion trade, following the same principles in reverse
⸻
📌 Trade Management Commentary:
• Holding from “UP” to “DOWN” would have captured the full reversion-to-reversion swing — a large, clean multi-week trend
• No need to predict tops or bottoms — just follow the signals and let the market guide you
• For traders who prefer swing or position strategies, using the ELFIEDT signal pairs (buy → sell or sell → buy) can offer a rule-based exit system tied directly to volatility and momentum extremes
⸻
🎯 Takeaway:
The ELFIEDT RSI + Reversion Strategy is not just for scalps or intraday setups — it can also support longer-term trend plays, providing clear visual signals that help eliminate emotional exits and allow trades to mature naturally.
This chart shows the power of the ELFIEDT RSI + Reversion Strategy not only in identifying strong short-term reversion trades but also in guiding traders through longer-term swing positions when holding a trade from exhaustion signal to exhaustion signal.
⸻
🟢 Buy Signal – Early Reversal Opportunity
Back on the left of the chart, the strategy printed an “UP” signal after a heavy selloff:
• Price had broken well below the lower volatility band
• RSI entered deeply oversold territory
• A strong bounce followed, confirming the shift in momentum
This setup offered a great opportunity for position traders to enter early on a larger move — and it played out exceptionally well.
⸻
🔺 Trend Continuation Through Higher Lows
After the buy signal, price continued to climb with higher highs and higher lows, allowing the position to be managed with:
• A trailing stop-loss below swing lows
• Partial profit-taking along the way
• Or simply holding for a strategy-based exit
⸻
🔻 Sell Signal – Opposite Reversion Appears
Eventually, the price topped out after a steep rally, and the strategy printed a clear “DOWN” signal:
• Price had pushed far above the upper deviation band
• RSI signaled overbought exhaustion
• A pullback quickly followed
This offered two strategic options for long-term traders:
1. Close the long position fully, locking in gains from the original buy signal
2. Flip the bias and enter a short reversion trade, following the same principles in reverse
⸻
📌 Trade Management Commentary:
• Holding from “UP” to “DOWN” would have captured the full reversion-to-reversion swing — a large, clean multi-week trend
• No need to predict tops or bottoms — just follow the signals and let the market guide you
• For traders who prefer swing or position strategies, using the ELFIEDT signal pairs (buy → sell or sell → buy) can offer a rule-based exit system tied directly to volatility and momentum extremes
⸻
🎯 Takeaway:
The ELFIEDT RSI + Reversion Strategy is not just for scalps or intraday setups — it can also support longer-term trend plays, providing clear visual signals that help eliminate emotional exits and allow trades to mature naturally.
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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.