Trade Forex Trading

RSI Patterns and Trend-Lines

Forex traders draw trend lines on RSI much like they do on price charts. These RSI lines connect back-to-back peaks or dips on the indicator, just as with standard forex chart lines.

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 like head-and-shoulders or triangle formations, which may not always be visible on Forex price charts, often appear within the RSI indicator itself.

RSI also often makes patterns like head and shoulders or triangle shapes that you might or might not see on the forex price chart. As you can see on the forex chart below, the Inverse Head and Shoulders turnaround pattern is very clear on this RSI tool.

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, the important levels on a chart are clearer on the RSI than they are on the regular price chart for forex trading.

In an up forex trend, support levels hold firm. A break means price drops through them. The uptrend then flips down.

In a declining forex trend, staying vigilant about resistance levels is vital. A breach of these levels can indicate an impending reversal of the downward trend.

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

Support and Resistance Zones Shown on the 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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