RSI Indicator Forex Chart Patterns & Trend Lines

Forex traders can plot trend lines on the RSI in the same way as you can plot trend lines on the forex price charts. RSI trend lines are plotted the same way trend lines are plotted on the forex chart; by joining consecutive highs of the RSI indicator or consecutive lows on the RSI forex Indicator.

RSI Trend Lines & Forex Trend lines on Forex Charts

RSI Chart Setups in Forex Trading

RSI Chart patterns such as head and shoulders patterns or triangle chart patterns that are not evident on the forex price chart are often formed on this RSI indicator.

RSI indicator also often forms patterns such as head and shoulders or triangles chart patterns that may or may not be visible on the forex price chart. As shown on the forex chart below the Reverse Head and Shoulders reversal formation is clearly shown on this forex RSI indicator.

Forex Chart Setups on RSI Forex Chart Indicator

Support and Resistance Levels Trading using RSI Indicator

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

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

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

Support and Resistance Areas on RSI Indicator

In the forex trading example above when the third resistance level was broken the downward forex trend reversed to an upward forex trend and when the sixth support was broken the upward forex market trend reversed and broke the upward trend line.