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RSI Swing Failure XAUUSD Setup

RSI xauusd swing failure can be a very accurate method for trading short term xauusd moves. It can also be used for trading long term xauusd trends but it is best suited for short term xauusd especially for those xauusd traders that trade reversals.


The RSI swing failure swing xauusd setup is a confirmation of a pending xauusd market reversal. This xauusd swing failure setups a leading breakout signal, it warns that a support or resistance level in the xauusd market is going to be penetrated. This xauusd setup should occur at values above 70 for an upward xauusd trend and values below 30 in a downward gold trend.


Swing Failure In an Upward XAUUSD Trend

If the xauusd RSI XAUUSD Indicator hits 79 then pulls back to 72, then rises to 76 and finally drops to below 72 this is considered a failure swing xauusd RSI setup. Since the 72 level is an RSI support level and it has been penetrated it means that gold price will and follow and it will penetrate its support level.


In the xauusd example shown below, the xauusd RSI indicator hits 73 then pulls back to 56, this is a support level. The xauusd indicator then rises to 68 and then drops to below 56, thus breaking the support level. The gold price then follows afterwards breaking it support level. The xauusd RSI swing failure is a leading xauusd signal and it is confirmed when gold price also breaks it support level. Some xauusd traders open trades once the swing failure is complete while other xauusd traders wait for gold price confirmation, either way it is for a xauusd trader to decide what work best for them.


RSI Swing Failure in an upward xauusd trend

XAUUSD Trading RSI Swing Failure Setup in an Upward XAUUSD Trend


Swing Failure In a Downward XAUUSD Trend

If the xauusd RSI XAUUSD Indicator hits 20 then pulls back 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 gold price will and follow and it will penetrate its resistance level.

RSI Swing Failure in a downward xauusd trend

XAUUSD Trading RSI Swing Failure Setup in a Downward XAUUSD Trend

 

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