Trade Forex Trading

RSI Patterns and 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 or consecutive lows on the RSI Indicator.

RSI Trend Lines and Trend lines in Trade Charts

RSI Trend-Lines and Trend lines in Forex Charts

RSI Chart Setups in Forex Trading

RSI Chart patterns such as head and shoulders patterns or triangle chart patterns which aren't evident on the forex price chart are often formed on this RSI indicator.

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

RSI Patterns in Trading Forex, RSI Trendlines, RSI Support Resistance Levels

FX Chart Setups on RSI Chart Indicator

Support & Resistance Levels Trading using RSI Indicator

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

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

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

RSI Setups in Trading Forex, RSI Trend-Lines, RSI Support Resistance Areas

Support & Resistance Levels on RSI Indicator

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

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