EURUSD M5 Divergence + Accumulation Strategy

Fast M5 plan that combines momentum divergence with accumulation at levels.
We look for price vs oscillator divergence into a well‑tested level, signs of absorption/accumulation, and a reclaim trigger back through micro‑structure.

Tools

• Oscillator (RSI 14 or MFI 14) to spot divergence at extremes.
• Session levels: prior day H/L, intraday highs/lows, round numbers.
• Volume/A/D (optional) to judge absorption/accumulation.
• ATR(14) (on M5) for stop/size.

Signal definition

• Bullish: price makes a lower low into level while oscillator makes a higher low.
• Bearish: price makes a higher high into level while oscillator makes a lower high.

Trigger (the reclaim)

1. Mark the decision level (last micro swing or box edge).
2. Enter on a close back through that level (engulfing/rejection).
3. No trigger within 3–6 bars → skip.

Entry & Management

• Entry on close of the trigger candle, or limit near the reclaim if structure allows.
• Scale out 1/2 at 1.5R–2R; trail the rest behind micro‑swings.

Stop Loss

• Beyond the extreme wick of the setup leg or ATR(14) × 1.2–1.8.
• Add a small buffer for spread.

Filters

• Avoid first 2–3 minutes after a major news release.
• Skip during dead liquidity (post‑NY close) or wild chop.
• One active position per symbol; risk ≤ 0.5%–1%.