RSI Indicator Chart Patterns & XAUUSD Trend Lines
Traders can draw trend lines on the RSI in the same way as you can draw trend lines on the price charts. RSI trend lines are drawn the same way trend lines are drawn on the chart; by joining consecutive highs of the RSI indicator or consecutive lows on the RSI Indicator.
RSI Trend Lines & Trend lines on XAUUSD Charts
RSI Gold Chart Patterns in XAUUSD
RSI Chart patterns such as head & shoulders patterns or triangle patterns that are not evident on the price chart are often formed on this RSI indicator.
RSI indicator also often forms xauusd patterns such as head & shoulders or triangles xauusd chart patterns that may or may not be visible on the price chart. As shown on the chart below the Reverse Head and Shoulders reversal formation is clearly shown on this xauusd RSI indicator.
Gold Chart Setups on RSI Gold Chart Indicator
Support & Resistance Areas using RSI Indicator
Sometimes xauusd chart levels of support and resistance zones are demonstrated better on the RSI indicator than on the price chart.
In an upward xauusd market trend the support zones shouldn't be broken at any one time, if they're broken then trading price will also break the support zones & the upward trend is going to reverse.
In a downward xauusd trend the resistance zones shouldn't be broken, if they're broken then trading price will also break the resistance zones, and the downward xauusd trend is going to reverse.
Support & Resistance Areas on RSI Indicator
In the example above when the third resistance zone was broken the downward xauusd trend reversed to an upward xauusd trend and when the sixth support was broken the upward xauusd market xauusd trend reversed & broke the upwards trend line.
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