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RSI (Relative Strength Index)

The RSI is a price-following oscillator that ranges between 0 and 100. A popular method of analyzing the RSI is to look for a divergence in which the currency price is making a new high, but the RSI is failing to surpass its previous high. This divergence is an indication of an impending reversal. When the RSI then turns down and falls below its most recent trough, it is said to have completed a "failure swing." The failure swing is considered a confirmation of the impending reversal in the price of the currency.

See also:
Relative Strength Index and Its Failure-Swing Points
Technical indicators Tutorial

Relative strength index day trading signal

relative strength index day trading signal

USDJPY daily chart

USDJPY daily chart

USDJPY 4 hours chart

USDJPY 4 hours chart

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Daily Forex Reports

USD/JPY Forecast July 24, 2014, Technical Analysis
Thursday, 24 July 2014 07:29 UTC

The USD/JPY pair initially fell during the session on Wednesday, but found enough support below in order to turn things back around and form a hammer. This market is towards the bottom of the larger consolidation area, so we are interested in...

USD/CAD Forecast July 24, 2014, Technical Analysis
Thursday, 24 July 2014 07:29 UTC

The USD/CAD pair initially fell during the session on Wednesday, but found enough support at the 1.07 level to turn things back around and form a hammer. That hammer of course suggests that the market is ready to go higher, and as a result we will...

GBP/USD Forecast July 24, 2014, Technical Analysis
Thursday, 24 July 2014 07:28 UTC

The GBP/USD pair initially tried to rally during the session on Wednesday, but with the Bank of England failing to impress upon the market a bit of a drive to tighten monetary policy, the British pound was in fact sold off later in the day. That...

EUR/USD Forecast July 24, 2014, Technical Analysis
Thursday, 24 July 2014 07:27 UTC

The EUR/USD pair initially tried to rally during the session on Wednesday, but as you can see turned back around and close towards the end of the day, forming a negative looking candle. The range was pretty small though, so as you can see it...

AUD/USD Forecast July 24, 2014, Technical Analysis
Thursday, 24 July 2014 07:26 UTC

The AUD/USD pair fell rather significantly the session before, but we did have a nice bounce and rise during the session on Wednesday. This was partly in reaction to be stronger than anticipated CPI numbers out of Australia, slamming this pair into...

USDCAD Daily Analysis - July 24, 2014
Thursday, 24 July 2014 03:43 UTC

USDCAD moved sideways in a trading range between 1.0707 and 1.0794. As long as 1.0707 support holds, the price action in the range could be treated as consolidation of the uptrend from 1.0619, another rise to 1.0850 area is still possible. On the...

Forex Signals

Buy GBP/AUD @ 1.80357 By Signal Factory
Thursday, 24 July 2014 08:30 UTC

Buy GBP/AUD @ 1.80357 By Signal Factory | SL:1.79957 | TP:1.81157 | 2014.07.24 08:22...

Close Buy AUD/USD @ 0.94393 By Signal Factory
Thursday, 24 July 2014 06:30 UTC

Close Buy AUD/USD @ 0.94393 By Signal Factory | Profit: +46 pips | 2014.07.24 09:16...

Buy EUR/USD @ 1.34482 By Signal Factory
Thursday, 24 July 2014 06:30 UTC

Buy EUR/USD @ 1.34482 By Signal Factory | SL:1.33459 | TP:1.35455 | 2014.07.24 09:17...

Sell USD/CHF @ 0.90310 By Signal Factory
Thursday, 24 July 2014 06:30 UTC

Sell USD/CHF @ 0.90310 By Signal Factory | SL:0.91328 | TP:0.89600 | 2014.07.24 09:16...

Close(SL) Buy EUR/USD @ 1.34414 By Signal Factory
Thursday, 24 July 2014 06:15 UTC

Close(SL) Buy EUR/USD @ 1.34414 By Signal Factory | Loss: -92 pips | 2014.07.24 09:01...

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A spread is the difference between the price a trader pays and the price offered by a broker. It is expressed in pip/s. For instance, a trader's price is 4.000 and a broker's offer is 3.500, the difference between them is .500. Thus, the spread is...

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We are not advocating Martingale strategies. But rather, we respect the Martingale concept and believe it has its place in a trader's portfolio. The following tips seek to reduce the overall risk and increase the overall success for Martingale...

Know more about Forex Risk/Reward Ratio
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