Trade Bitcoin Trading

RSI Swing Failure Bitcoin Trade Setup

RSI swing failure can be a very accurate technique for trading short term bitcoin trading moves. It can also be used for long term bitcoin trends but it is best fitted for short term bitcoin trading especially for those bitcoin traders that trade reversals.

The RSI swing failure swing cryptocurrency setup is a confirmation of a pending price reversal. This btcusd swing failure setups a leading breakout signal, it warns that a support resistance level in the btcusd market is going to be penetrated. This setup should occur at values/readings above 70 for an upward bitcoin trend & readings below 30 in a downwards trend.

Swing Failure In an Upwards Bitcoin Trend

If the Bitcoin RSI hits 79, then falls to 72, climbs to 76, and drops below 72, it forms a failure swing. The 72 mark acts as RSI support. Since it breaks, Bitcoin prices will follow and break their own support.

Within the subsequent illustration, the Bitcoin Relative Strength Index (RSI) technical indicator reached a level of 73 before retracting to 56, which established a temporary support threshold. The indicator then rebounded to 68 before experiencing a decline below 56, thereby breaching that established support area. Subsequently, the actual Bitcoin price mirrored this action by also breaking its corresponding support boundary. This Bitcoin RSI swing failure acts as a predictive signal, gaining confirmation when the Bitcoin price concurrently penetrates its support region. Some traders execute entry orders immediately upon the completion of the swing failure, whereas other Bitcoin traders prefer to await explicit price confirmation: regardless of the path chosen, the definitive methodology that proves most effective remains the trader's final discretion.

RSI Swing Failure in an upward bitcoin trend - RSI BTCUSD Analysis BTCUSD Strategy

RSI Swing Failure in an Upward Bitcoin Trend

Swing Failure Setup In a Downwards Bitcoin Trend

If the bitcoin RSI Bitcoin Indicator hits 20 then pulls back/retraces to 28, then falls to 24 and finally penetrates above 28, this is considered a failure swing setup. Since the 28 level is an RSI resistance level and it has been penetrated it means that bitcoin price will & follow & it will penetrate its resistance area.

RSI Swing Failure in a downward bitcoin trend - RSI Crypto Analysis Strategy

RSI Swing Failure Setup in a Downward Bitcoin Trend

Get More Lessons and Tutorials & Courses:

Bitcoin Broker