RSI Indicator 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 indicator or consecutive lows on the RSI Indicator.
RSI Trend Lines & 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 RSI indicator.
Forex Chart Setups on RSI Chart Indicator
Support and Resistance Levels Trading using RSI Indicator
Sometimes chart levels of support & resistance levels are demonstrated better on the RSI indicator 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're 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're broken then price also will break the resistance levels, and the downward forex trend is going to reverse.
Support and 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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