RSI Swing Failure XAUUSD Setup

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

The RSI swing failure swing xauusd setup is a confirmation of a pending market reversal. This swing failure set-ups a leading break out signal, it warns that a support or resistance zone in the market is going to be penetrated. This setup should occur at values above 70 for an upward trend & values below 30 in a down-wards trend.

Swing Failure In an Upwards Trend

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

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

RSI Swing Failure Setup on Upward and Downward Trend - RSI Strategies Buy & Sell Trading Indicators Checklist

XAUUSD RSI Swing Failure Setup in an Upward Trend

Swing Failure In a Downward Trend

If the RSI Indicator touches 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 & it has been penetrated it means that price will and follow and it'll penetrate its resistance zone.

RSI Swing Failure in a downwards trend - RSI Strategies

XAUUSD RSI Swing Failure Setup in a Downward Trend

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RSI Swing Failure XAUUSD Setup

Swing Failure In an Upwards Trend

Swing Failure In a Downward Trend