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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 February 9, 2016, Technical Analysis
Tuesday, 09 February 2016 06:44 UTC

The USD/JPY pair fell rather significantly during the course of the session on Monday, testing the 115 level. By doing so, the market looks as if it is testing a very significant amount of support and if we can break down below their things could get...

USD/CAD Forecast February 9, 2016, Technical Analysis
Tuesday, 09 February 2016 06:44 UTC

The USD/CAD pair had a back-and-forth type of session during the day on Monday, as we tested the 1.40 level. That area offered enough resistance to turn the market back around and form a somewhat weak looking candle. If we can break down below the...

GBP/USD Forecast February 9, 2016, Technical Analysis
Tuesday, 09 February 2016 06:43 UTC

The GBP/USD pair fell initially during the course of the day on Monday, but found enough support near the 1.44 level to turn things back around. By doing so, the market looks as if it is trying to bouncer here but we recognize that there is a lot of...

EUR/USD Forecast February 9, 2016, Technical Analysis
Tuesday, 09 February 2016 06:42 UTC

The EUR/USD pair went back and forth during the course of the day on Monday, ultimately showing quite a bit of support just above the 1.1050 level. That level was significantly resistive in the past, so it makes sense that the buyers are attracted to this...

AUD/USD Forecast February 9, 2016, Technical Analysis
Tuesday, 09 February 2016 06:42 UTC

The AUD/USD pair went back and forth during the course of the session on Monday, showing that there is quite a bit of confusion in this market. With that being the case, we think that there is still a significant amount of support near the 0.70...

USDJPY Head and Shoulders Breakout (Feb 09, 2016)
Tuesday, 09 February 2016 05:02 UTC

USDJPY appears to have a made a convincing break below the head and shoulders neckline on its daily time frame. This suggests that the pair could be in for more longer-term losses, possibly amounting to around 900 pips or the same height as the...

Forex Signals

Close(TP) Sell AUD/NZD @ 1.06445 By Signal Factory
Tuesday, 09 February 2016 11:15 UTC

Close(TP) Sell AUD/NZD @ 1.06445 By Signal Factory | Profit: +80 pips | 2016.02.09...

Close(TP) Buy GBP/USD @ 1.44844 By Signal Factory
Tuesday, 09 February 2016 11:00 UTC

Close(TP) Buy GBP/USD @ 1.44844 By Signal Factory | Profit: +80 pips | 2016.02.09 10:49...

Close(TP) Sell EUR/CHF @ 1.09881 By Signal Factory
Tuesday, 09 February 2016 10:45 UTC

Close(TP) Sell EUR/CHF @ 1.09881 By Signal Factory | Profit: +80 pips | 2016.02.09...

Close(TP) Sell EUR/CHF @ 1.09915 By Signal Factory
Tuesday, 09 February 2016 10:45 UTC

Close(TP) Sell EUR/CHF @ 1.09915 By Signal Factory | Profit: +80 pips | 2016.02.09...

Close(SL) Sell CHF/JPY @ 117.568 By Signal Factory
Tuesday, 09 February 2016 10:45 UTC

Close(SL) Sell CHF/JPY @ 117.568 By Signal Factory | Loss: -39 pips | 2016.02.09 10:37...

Technical Analysis Articles

Tips on Choosing the Right Forex Broker
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According to estimates, the average traded value per day in the forex market is to the tune of $4 trillion, making it the world’s largest financial market. Forex trading is a high-risk activity and investors are susceptible to windfall profits and...

The Two Types of Forex Trading Spreads
Tuesday, 17 December 2013 04:31 UTC

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...

What are the political and economic factors associated with forex trading?
Thursday, 24 October 2013 12:32 UTC

For people seeking to engage in forex trading, whether by directly buying currencies or by spreadbetting via a company like IG, the array of political and economic indicators that can move the currency markets...

What's the best way to trade Martingale Forex Trading Strategies?
Monday, 07 October 2013 08:19 UTC

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
Thursday, 12 September 2013 11:03 UTC

A forex trader will often encounter the term 'risk/reward ratio'. What does this tem actually mean? Would understanding this ratio bring a lot of profit to a trader?

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