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 Bitcoin Indicator hits 79 then pulls back to 72, then rises to 76 and finally drops to below 72 this is considered a failure swing bitcoin RSI setup. Since the 72 level is an RSI support level and it has been penetrated it means that bitcoin price will & follow & it will penetrate its support zone.
In the exemplification shown below, the bitcoin RSI indicator hits 73 then pulls back to 56, this is a support zone. The indicator then rises to 68 & then drops to below 56, thus breaking the support zone. The bitcoin price then follows afterwards breaking it support level. The bitcoin RSI swing failure is a leading signal and it is confirmed when bitcoin price also breaks it support zone. Some traders open trade transactions once the swing failure is complete while other bitcoin traders wait for bitcoin price confirmation, either way it's for a bitcoin trader to decide what method works best for them.
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 Setup in a Downward Bitcoin Trend
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