RSI(2) pullback
Popularized by Larry Connors: in a long-term uptrend, buy when a very short RSI shows the market is deeply oversold, then sell on the bounce.
Watch it play out
Replay plays a setup this strategy already finished and stops so you can call it. Live watches for the next one on Bitcoin (BTC-USD, 1-minute candles). Either way a setup is marked only when a candle closes, then it's locked and plays out to its target or its stop. Nothing to trade here.
How the live chart applies the rules
- 1-minute candles. The chart runs every strategy on 1-minute Bitcoin candles from Coinbase, whatever timeframe the strategy page suggests. Times are New York time.
- Closed candles only. Levels, triggers and stops are read when a candle closes. Entry is that candle's close.
- One setup at a time. While a setup is playing out, the same strategy doesn't start another.
- Sensible risk only. A setup counts only if its stop is between a quarter and 6 times the average candle range (ATR 14) from entry (wider for session-range strategies), and its target is at least 0.75R away.
- How a setup ends. At its target or its stop. If one candle touches both, the stop counts. A setup also ends at any exit its page names, and after 120 candles (longer for trend and session strategies) if nothing is hit.
- Replays. A replay plays the latest setup this strategy finished on the live chart's recent history, sped up. It's the same setup the live chart confirmed, with the same entry, stop and result. If the strategy hasn't finished one recently, the replay uses example candles and says so.
- The trading day. A day runs 6:00 PM to 6:00 PM ET, like futures. VWAP restarts at 6:00 PM, and "yesterday" means the last full trading day.
How RSI(2) pullback works
- 1Where's the level?
- Price above its 200 moving average (the 200-day in the classic daily version; the 200 EMA on the live chart).
- 2What's the trigger?
- RSI(2) closes below 10.
- 3Where is it wrong?
- The classic daily version exits on time (after 5 days) or uses a fixed percentage. The live chart uses 1.5 ATR from entry.
- 4Where does it end?
- A close back above the 5 moving average (the 5 EMA on the live chart), capped at 2R.
- Markets
- Stocks, Index futures
- Timeframes
- 1d
- Sessions
- Daily close
- Also called
- Connors RSI 2
What it means
Popularized by Larry Connors: in a long-term uptrend, buy when a very short RSI shows the market is deeply oversold, then sell on the bounce.
How it is confirmed without repainting
Daily values are taken only from closed daily candles.
When it fails
Bear markets, where oversold gets more oversold.
Education only. Prop Firm Duel does not provide trade signals or financial advice. This page explains how the strategy is commonly defined. Past results never guarantee future results.
More Mean reversion strategies
All strategies20 EMA snapback
When price runs more than 3 ATRs away from its 20 EMA, it is stretched like a rubber band. The first candle that turns back is the signal to look for a return toward the average.
See the rulesBollinger band fade
Bollinger bands mark two standard deviations around a 20-period average. In a range, closes outside the band tend to snap back to the middle line.
See the rulesGap fill
When the market opens away from yesterday's close, small gaps often get filled as price drifts back to the prior close.
See the rules