Sweep, divergence, inversion.
One setup, traded the same way every day in the New York session. Price sweeps a key level, RSI diverges, and the entry comes when price inverts the gap it left behind. Every step below has to be there before I enter.
Liquidity taken
RSI divergence
Volume divergenceOptional
Inversion
Creates LL / HH on RSI
RSI above / below its MA
If you keep taking any old inversion and wondering why it fails, this list is the fix. The inversion is the trigger, not the confirmation. It only counts once the sweep and divergence come before it, and RSI backs it up.
A real short, step by step.
Every rule above on one chart. Tap a number on the chart or a step in the list to see where it happens.
- 1
Liquidity taken
Equal highsJust after the New York open, price sweeps the equal highs.
- 2
RSI divergence
Price HH · RSI LHPrice makes a higher high while RSI makes a lower high.
- 3
Volume divergence
Fading into the highVolume fades into the high.
- 4
Inversion
The triggerPrice closes back down through the gap it left on the way up. That close is the entry.
- 5
Creates LL on RSI
Structure checkRSI breaks below its last swing low.
- 6
RSI below its MA
Final filterRSI sits under its moving average. Every box ticked: short.
- ✓
Targets hit