Fig 1. EURUSD 1 hr chart on Feb 1st, at the day low.

Here we see a reverse divergence (rDIV) on the classic level. The classic level is just a past high which becomes a new low after it is crossed once, put another way; resistance becomes support. The rDIV signal is important because it is on the classic level; if there is regular RSI DIV in the lower time frames, then a price reversal is highly probable. This set up is called the RSI Reloaded, its very strong.

Fig 2. EURUSD 5min at low on Feb 1st, 2013. Here we see a weak RSI DIV signal on two levels; the classic long which was the strategy entry. This is the point where the 1HR reverse divergence signal completed, the weak rsi div signal indicates that the 1min chart should also be reviewed because if there is a strong RSI DIV >5%, then it means a price reversal is highly probable. The 1min chart next seeking RSI DIV greater than 5%.

Fig 3. EURUSD 1min, the exact low now has strong RSI DIV. Count the candles and divide the dRSI% by it, to get the PD values. The pattern is a double bullish divergence which is the strongest single time frame reversal pattern and it completes with a double bottom divergence. The green region has a PD = 1.8 which suggests a price reversal on the confluence of the two levels is highly probable. We now have two different divergence types in three different time frames; on two different levels, and the rsi signals foreshadow a price reversal in the direction of the trend. This is called, RSI reloaded, but RSI DIV in three time frames is called Fractal Divergence, therefore we have a fractal RSI reloaded.

Fig 4. The move is explosive!

Fig 5. The hourly chart. The trend, the classic level, the retracement with its rDIV signal. The best multi-indicator, multi-time frame quantitative trading strategy; RSI Reloaded ! Notice the 4.0 PD value then pull back. 4.0 is the largest observed. The same pattern defined the SPX day low last week http://tiny.cc/spxbottom http://tiny.cc/rsireloaded