RSI XAUUSD Technical Analysis and RSI Signals

Developed by J. Welles Wilder, illustrated in the book "New Concepts in Technical Trading Systems".

RSI is the most popular/liked technical indicator & it is a momentum oscillator and a trend following indicator. RSI compares & analyzes a price magnitude of the recent price gains against the magnitude of recent losses price losses & draws this data on a scale of values that ranges between 0-100.

Relative Strength Index measures the momentum of a instrument: values/readings above 50 signify bullish momentum while values below 50 center-line signify bearish momentum.

Best RSI XAUUSD Indicator Combination - Gold RSI Analysis

RSI is drawn as a green line
Horizontal dashed lines are drawn to identifying over bought and oversold levels are - 70/30 levels respectively.

XAU/USD Technical Analysis and How to Generate Trading Signals

There are various techniques used to trade, these are:

50-level Crossover Signals

Buy signal - when the technical indicator crosses above the 50 a buy/bullish signal is given/generated.
Sell Signal - when the technical indicator crosses below the 50 mark a sell/bearish signal is given/generated.

Relative Strength Index - Best RSI XAUUSD Indicator Combination - RSI Described

RSI Gold Setup Patterns

Traders can draw trendlines & map out chart set-ups on the RSI indicator. The Relative Strength Index often forms xauusd patterns like a head & shoulders pattern which may not have formed clearly on price chart.

Gold Support/Resistance Break outs

RSI is a leading indicator & can be used to predict the Support/Resistance Break Outs before the price breaks its support/resistance level. RSI technical uses the swing failure signal to predict when price is about to break support and resistance zones.

RSI XAUUSD Technical Indicator Analysis - RSI XAUUSD Indicators - Gold RSI Buy & Sell Trading Signals Indicator

Swing Failure - Support and Resistance Break out

Over-bought/Oversold Conditions in Trading Indicator

Overbought levels above 80
Oversold - levels below 20

These levels can be used to generate signals like when RSI turns upward from below 20 after over-sold, buy & sell when RSI crosses to below 80 after over-bought, sell. These signals aren't suitable for Trading/Transacting because they are prone to a lot of fakeouts.

Divergence Setups

Divergence trading is one of trading analysis method used to trade the reversals of the trends. There are 4 types of divergences which can be traded with this technical indicator covered & explained in the divergence tutorial on this site.

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