RSI Stock Indices Indicator Stock Index Chart Patterns and Stock Indices Trend Lines
Traders can draw stock indices trend lines on the RSI in the same way as you can draw stock indices trend lines on the stock index price charts. RSI stock indices trend lines are drawn the same way stock indices trend lines are drawn on the stock index chart; by joining consecutive highs of the RSI stock indices indicator or consecutive lows on the RSI stock indices Indicator.
RSI Stock Indices Trend Lines and Stock Indices Trading Trend lines on Stock Indices Charts
RSI Stock Index Chart Patterns in Stock Indices
RSI Chart patterns such as head and shoulders stock indices chart patterns or triangle stock indices chart patterns that are not evident on the stock index price chart are often formed on this RSI stock indices indicator.
RSI stock indices indicator also often forms stock indices chart patterns such as head and shoulders or triangles stock indices chart patterns that may or may not be visible on the stock index price chart. As shown on the stock index chart below the Reverse Head and Shoulders reversal formation is clearly shown on this stock indices RSI indicator.
Stock Index Chart Patterns on RSI Stock Index Chart Indicator
Support and Resistance Levels Trading using RSI Stock Indices Indicator
Sometimes stock indices chart levels of support and resistance levels are demonstrated better on the RSI indicator than on the stock index price chart.
In an upward stock indices market trend the support levels should not be broken at any one time, if they are broken then stock index price will also break the support levels and the upward stock indices trend is going to reverse.
In a downward stock indices trend the resistance levels should not be broken, if they are broken then stock index price will also break the resistance levels, and the downward stock indices trend is going to reverse.
Support and Resistance Levels on RSI Stock Indices Indicator
In the stock indices example above when the third resistancelevel was broken the downward stock indices trend reversed to an upward stock indices trend and when the sixth support was broken the upward stock indices market stock indices trend reversed and broke the upward stock indices trend line.