RSI Indicator Chart Patterns & Trend Lines

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

RSI Trend Lines & Trend lines on Stock Indices Trade Charts

RSI Chart Patterns in Stock Indices Trading

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

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

Chart Patterns on RSI Trade Chart Indicator

Support & Resistance Levels Trading using RSI Indicator

Sometimes Stock Indices trade chart levels of support & resistance levels are demonstrated better on the RSI indicator than on the Stock Indices price chart.

In an upwards Stock Indices 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 upwards Stock Indices trend is going to reverse.

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

Support & Resistance Levels on RSI Indicator

In the Stock Indices example above when the third resistance level was broken the downward trend reversed to an upwards Stock Indices trend & when the sixth support was broken the upwards Stock Indices market trend reversed and broke the upwards Stock Indices trend line.