RSI Indicator Chart Pattern Setups & 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 RSI Indicator.
RSI Trend-Lines and Trend lines in XAUUSD Charts
RSI Gold Pattern Setups in XAUUSD
RSI Chart patterns such as head & shoulders patterns or triangle patterns which aren't evident on the price chart are often formed on this RSI indicator.
RSI indicator also often forms xauusd patterns like head & shoulders or triangles gold chart patterns that may or may not be visible on the price chart. As shown & displayed on the chart below the Reverse/Inverse Head and Shoulders reversal setup is clearly shown on this xauusd RSI indicator.
Gold Chart Setups on RSI Gold Chart Indicator
Support & Resistance Areas using RSI Indicator
Sometimes gold chart levels of support & 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 are 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 are broken then price will also break the resistance zones, and the downward xauusd trend is going to reverse.
Support & Resistance Areas on RSI Indicator
In the illustration displayed 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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