RSI Mean Reversion for EURUSD (EUR/USD)

Buy oversold, sell overbought — the simplest counter-trend strategy that still works in range-bound markets.

Why RSI Mean Reversion Works on EURUSD

RSI mean reversion buys when RSI(14) drops below 30 and exits above 70. It fails badly in strong trends — a stock can stay overbought for weeks — so it only earns its keep on range-bound symbols or with an ADX/MA regime filter. Tighter thresholds (25/75) reduce trade count but improve win rate.

EUR/USD is the most liquid forex pair on the planet. Tight spreads, predictable session-based behavior, and clean technicals make it a default training ground for forex bots.

Forex pairs trade with tight spreads, deep liquidity, and predictable session-based behavior. The strategy below earns its edge during the active sessions for this pair.

Pine Script Source

Copy this into PineForge — backtest on EURUSD or any supported symbol, then deploy as a live bot.

//@version=5
strategy("RSI Mean Reversion", overlay=true)

rsi_len = input.int(14, "RSI Length")
oversold = input.int(30, "Oversold Level")
overbought = input.int(70, "Overbought Level")

rsi_val = ta.rsi(close, rsi_len)

if rsi_val < oversold
    strategy.entry("Long", strategy.long)

if rsi_val > overbought
    strategy.close("Long")