RSI Divergence Reversal Scanner
An automated scanner optimized for high-conviction bullish reversals — the undercut & reclaim pattern with bullish RSI divergence, prioritizing high-beta names and fresh moving average crossovers.
The Setup
Undercut & reclaim with bullish RSI divergence
The scanner looks for a specific bullish reversal structure: a prior swing low (RSI < 45) that gets undercut on weakness, but on that lower price RSI prints a higher value (bullish divergence), followed by a reclaim of the prior low within 5 days.
Prior swing low
A meaningful low with RSI in oversold/weak territory (< 45). This is the level the stock needs to break (undercut) and later reclaim. Uses 5-bar lookback for structural significance.
Undercut
A new low below the prior swing low within the last 5 bars, with RSI still relatively low (< 55). If RSI on the undercut is higher than at the prior low, we have bullish divergence.
Reclaim
Price closes back above the prior low within 5 days, confirming buyers stepped in. The reclaim candle ideally comes on expanding volume with a strong close in the upper range.
RSI divergence
We compare RSI at the prior low vs. RSI at the undercut. A larger positive delta (undercut RSI > prior-low RSI) indicates stronger weakening of downward momentum and scores higher.
Scoring System
Composite quality score optimized for actionable setups
RSI divergence strength (up to 20 pts)
The wider the RSI divergence gap, the higher the score. A delta of 15+ earns full marks — this is the hallmark of the best setups.
Volume expansion (up to 15 pts)
Ratio of volume on the reclaim bar vs. 20-bar average. 2x+ volume signals strong conviction from buyers.
Fresh MA crossover (up to 8 pts)
Detects when price was below the 20 or 50 SMA within 5 bars but is now above. Both MAs reclaimed = 8 pts. This catches the thrust through resistance pattern.
High-beta bonus (up to 5 pts)
Based on ATR as a percentage of price. Higher volatility stocks (ATR% of 4%+) get maximum bonus — these offer the biggest reversal moves.
MA reclaim (up to 10 pts)
Bonus points for being above the 10 EMA, 20 SMA, and 50 SMA at the current bar.
Other factors
Undercut depth (slight, under 3%, preferred), RSI depth bonus (deeper oversold = stronger), fresh reclaim bonus, and proximity to reversal zone (still near the low = more upside).
Scan universe
S&P 500, Nasdaq 100, IBB (biotech) & VGT (tech) ETF holdings, top 100 cryptos by market cap, and Coinbase perpetuals. Focused on high-beta opportunities.
Schedule
The scanner runs twice per trading day at 11:00 CT and 14:30 CT. On-demand scans are also available from the Run Scan page.
All scan data is stored in the scan_results table, populated by the scheduled scanner tasks. This dashboard is read-only — filtering and detail views query the same database used by the scanner.