EURUSD Trend Reversal Strategy (D1)

A patient daily‑chart reversal plan for EURUSD. We wait for structure breaks (from HH/HL to LL/LH or vice‑versa), add RSI divergence, and require a trigger candle (engulfing/false break).

Tools

• Clean candles on D1.
• Structure read: HH/HL vs LL/LH.
• RSI(14) divergence (optional but preferred).
• ATR(14) for stop & sizing; 200‑EMA as context filter.

Market logic

• A trend often exhausts with slowing momentum, divergence, and a false break beyond prior swing.
• The reversal confirms only after a break of structure (BOS) and a quality retest.

Entry

1. Detect a mature trend and mark the key swing.
2. Spot RSI divergence near extremes or a false break (wick through the prior high/low).
3. Enter on engulfing / strong rejection after a BOS + retest (close beyond and pullback).

Stop Loss

• Beyond the extreme wick of the signal leg or ATR(14) × 2.0–2.5.
• Size positions for D1 volatility; smaller lots than intraday.

Take Profit

• Structure targets: previous swing, then unfilled imbalance; or
• R‑multiples: 2R first, trail remainder with swing highs/lows or 200‑EMA.

Filters & notes

• Avoid fresh entries ahead of ECB/FOMC/NFP.
• Weekly bias should not contradict the D1 signal hard.
• Trade max 1–2 positions per setup; risk ≤ 0.5–1% each.