📉 SOLUSD Reversion Entry – Capturing the Recovery
This chart shows a textbook example of how the ELFIEDT RSI + Reversion Strategy can help identify panic-driven lows and offer early reversal signals for a clean intraday recovery.
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🟢 Signal Breakdown:
1. Sharp Drop into Oversold Territory
Solana (SOLUSD) experienced a large, fast selloff, breaking multiple support levels and triggering a flush in price. This type of move often represents emotional or news-driven liquidation — perfect for statistical reversion setups.
2. First “UP” Signal Printed at the Low
The strategy fired a buy signal just as price reached peak selling pressure:
• Price closed well below the lower volatility band
• RSI reached an extreme oversold zone
• The reversal candle marked the turning point
3. Second “UP” Signal on Confirmation
A follow-up signal printed one candle later, offering traders a second chance to enter the reversal with RSI already starting to recover upward.
4. Bounce Followed Shortly After
Price rallied from the lows, recovering several dollars in value and offering a strong mean reversion trade with limited downside risk.
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✅ How Traders Could Have Used This Setup:
• Wait for the first “UP” label to print on a fast drop — especially after a vertical move like this
• Confirm with RSI turning up from deeply oversold conditions
• Use the low of the signal bar as your stop
• Target previous minor support/resistance or the moving average reversion zone as your first TP
⸻
💡 Why This Worked:
The trade worked well because:
• It was a statistical outlier move (rare volatility event)
• Volume and momentum exhaustion were confirmed by RSI
• The script visually identified the moment where price had likely stretched too far
⸻
This is exactly what the ELFIEDT strategy is designed for — catching those high-stress extremes where most traders panic, but structured reversion logic finds opportunity.
This chart shows a textbook example of how the ELFIEDT RSI + Reversion Strategy can help identify panic-driven lows and offer early reversal signals for a clean intraday recovery.
⸻
🟢 Signal Breakdown:
1. Sharp Drop into Oversold Territory
Solana (SOLUSD) experienced a large, fast selloff, breaking multiple support levels and triggering a flush in price. This type of move often represents emotional or news-driven liquidation — perfect for statistical reversion setups.
2. First “UP” Signal Printed at the Low
The strategy fired a buy signal just as price reached peak selling pressure:
• Price closed well below the lower volatility band
• RSI reached an extreme oversold zone
• The reversal candle marked the turning point
3. Second “UP” Signal on Confirmation
A follow-up signal printed one candle later, offering traders a second chance to enter the reversal with RSI already starting to recover upward.
4. Bounce Followed Shortly After
Price rallied from the lows, recovering several dollars in value and offering a strong mean reversion trade with limited downside risk.
⸻
✅ How Traders Could Have Used This Setup:
• Wait for the first “UP” label to print on a fast drop — especially after a vertical move like this
• Confirm with RSI turning up from deeply oversold conditions
• Use the low of the signal bar as your stop
• Target previous minor support/resistance or the moving average reversion zone as your first TP
⸻
💡 Why This Worked:
The trade worked well because:
• It was a statistical outlier move (rare volatility event)
• Volume and momentum exhaustion were confirmed by RSI
• The script visually identified the moment where price had likely stretched too far
⸻
This is exactly what the ELFIEDT strategy is designed for — catching those high-stress extremes where most traders panic, but structured reversion logic finds opportunity.
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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.