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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 May 25, 2016, Technical Analysis
Wednesday, 25 May 2016 05:38 UTC

The USD/JPY pair initially fell on Tuesday, but found enough support near the 109 level to turn things back around and reach towards the 110 level. If we can break above there, the market could very well continue to go higher. However, we need to...

USD/CAD Forecast May 25, 2016, Technical Analysis
Wednesday, 25 May 2016 05:38 UTC

The USD/CAD pair went back and forth during the course of the day on Tuesday, as we continue to see quite a bit of volatility. We have an interest rate decision coming out of the Bank of Canada today, so that will of course have a massive effect...

GBP/USD Forecast May 25, 2016, Technical Analysis
Wednesday, 25 May 2016 05:37 UTC

The GBP/USD pair broke higher during the day on Tuesday as the 1.45 level has now offered quite a bit of support. In fact, we went much higher and we believe that the market will probably try to grind its way towards the 1.48 level above....

EUR/USD Forecast May 25, 2016, Technical Analysis
Wednesday, 25 May 2016 05:36 UTC

The EUR/USD pair initially tried to rally during the course of the session on Tuesday, but fell significantly and broke down below the 1.12 level. This signifies that the EUR/USD pair will more than likely try to reach down to the 1.10 level after...

AUD/USD Forecast May 25, 2016, Technical Analysis
Wednesday, 25 May 2016 05:36 UTC

The AUD/USD pair fell initially during the course of the day on Tuesday, but found enough support to turn things back around and form a hammer. The hammer of course is a bullish sign, so we can break above the top of it it’s likely that we will...

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Wednesday, 25 May 2016 02:50 UTC

USDCAD has been trending higher on its short-term time frame, moving above a rising trend line connecting the latest lows of price action on the 1-hour chart. Price appears to be hitting a resistance at the 1.3150 minor psychological level,...

Forex Signals

Close(TP) Buy EUR/AUD @ 1.55918 By Signal Factory
Thursday, 26 May 2016 01:30 UTC

Close(TP) Buy EUR/AUD @ 1.55918 By Signal Factory | Profit: +80 pips | 2016.05.26 01:30...

Close(TP) Sell AUD/CAD @ 0.93582 By Signal Factory
Thursday, 26 May 2016 01:30 UTC

Close(TP) Sell AUD/CAD @ 0.93582 By Signal Factory | Profit: +80 pips | 2016.05.26...

Buy AUD/NZD @ 1.06903 By Signal Factory
Thursday, 26 May 2016 01:30 UTC

Buy AUD/NZD @ 1.06903 By Signal Factory | SL:1.06503 | TP:1.07703 | 2016.05.26 01:29...

Close(SL) Sell AUD/NZD @ 1.07082 By Signal Factory
Wednesday, 25 May 2016 22:00 UTC

Close(SL) Sell AUD/NZD @ 1.07082 By Signal Factory | Loss: -40 pips | 2016.05.25 21:56...

Close(SL) Sell EUR/NZD @ 1.65487 By Signal Factory
Wednesday, 25 May 2016 20:45 UTC

Close(SL) Sell EUR/NZD @ 1.65487 By Signal Factory | Loss: -40 pips | 2016.05.25 20:39...

Technical Analysis Articles

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What are the political and economic factors associated with forex trading?
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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?
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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
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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