RSI Indicator Chart Patterns and 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 and 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 and 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 Levels using RSI Indicator

Sometimes xauusd chart levels of support and resistance levels are demonstrated better on the RSI indicator than on the price chart.

In an upward xauusd market trend the support levels should not be broken at any one time, if they are broken then trading price will also break the support levels & the upward trend is going to reverse.

In a downward xauusd trend the resistance levels should not be broken, if they are broken then trading price will also break the resistance levels, and the downward xauusd trend is going to reverse.

Support and Resistance Areas on RSI Technical Indicator

In the example above when the third resistance level 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 and broke the upward trend line.