🔥 RSI + SMC Premium Discount Zone Reversal Strategy

🔥 RSI + SMC Premium Discount Zone Reversal Strategy

🧠 Core Idea (Very Powerful)

Smart Money buys in discount and sells in premium.

RSI confirms exhaustion + reversal, SMC confirms where.

This strategy focuses on reversals from institutional zones, not breakouts.

📌 INDICATORS & TOOLS

• RSI (14)
• Smart Money Concepts (SMC)
• Order Blocks
• Premium / Discount Zones (50% equilibrium)
• 
  
• Timeframes:
• 
  
• HTF: 1H / 4H
• LTF: 5M / 15M

🟦 STEP 1: Define Market Bias (SMC)

On higher timeframe:

• Identify trend direction
• 
  
• Mark:
• Higher Highs / Higher Lows → Bullish
• Lower Highs / Lower Lows → Bearish

👉 Only trade with HTF bias.

🟦 STEP 2: Mark Premium & Discount Zones

• Draw range from swing high → swing low
• 50% = equilibrium
• Below 50% = Discount zone (BUY only)
• Above 50% = Premium zone (SELL only)

⚠️ No trades in equilibrium.

🟦 STEP 3: Wait for Price to Reach SMC Zone

Price must reach:

• Bullish Order Block in Discount (BUY)
• 
  
• Bearish Order Block in Premium (SELL)

This confirms institutional interest.

🟦 STEP 4: RSI Reversal Confirmation

BUY Conditions

• Price in discount + bullish OB
• RSI below 30
• RSI starts turning upward OR bullish divergence

SELL Conditions

• Price in premium + bearish OB
• RSI above 70

• RSI starts turning downward OR bearish divergence

🟦 STEP 5: Market Structure Shift (Entry Trigger)

On lower timeframe:

• Break of structure (BOS)
• BUY: Lower lows → higher lows
• SELL: Higher highs → lower highs

📍 Entry:

• At 50% of order block after BOS

🟦 STEP 6: Stop Loss & Targets

Stop Loss

• Below bullish OB (BUY)
• Above bearish OB (SELL)

Targets

• TP1: Equilibrium (50%)
• TP2: Opposite liquidity
• 
  
• RR: 1:2 to 1:4

🟦 DAILY RULES

✔ Max 1–2 trades/day

✔ Trade London & NY sessions

✔ Avoid RSI between 40–60

✔ Journal every trade