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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

USDCAD Weekly Analysis - August 2, 2015
Sunday, 02 August 2015 09:00 UTC

USDCAD remains in uptrend from 1.1919. Further rise could be expected after a minor consolidation, and next target would be at 1.4000 area. Support is now at 1.2850, as long as this level holds, the uptrend will continue.

USDJPY Weekly Analysis - August 2, 2015
Sunday, 02 August 2015 09:00 UTC

USDJPY remains in uptrend from 115.56, the fall from 125.85 is likely consolidation of the uptrend. Support is located at the bottom of the price channel on daily chart. As long as the channel support holds, the uptrend could be expected to...

AUDUSD Weekly Analysis - August 2, 2015
Sunday, 02 August 2015 08:59 UTC

AUDUSD continued its downward movement from 0.8162, and the fall extended to as low as 0.7233. Further decline could be expected and next target would be at 0.6800 area. Resistance is at 0.7400, as long as this level holds, the downtrend will...

GBPUSD Weekly Analysis - August 2, 2015
Sunday, 02 August 2015 08:59 UTC

GBPUSD remains in uptrend from 1.4565, the price action from 1.5814 is likely consolidation of the uptrend. Support is at 1.5170, as long as this level holds, the uptrend could be expected to resume, and next target would be at 1.6500 area. Only...

EURUSD Weekly Analysis - August 2, 2015
Sunday, 02 August 2015 08:58 UTC

EURUSD moved sideways in a trading range between 1.0808 and 1.1467. As long as 1.0808 support holds, the price action in the range could be treated as consolidation of the uptrend from 1.0462, another rise towards 1.2500 could be expected after...

AUDUSD Downtrend Reversal (July 31, 2015)
Friday, 31 July 2015 07:45 UTC

 AUDUSD is forming a double bottom pattern on its 1-hour chart, signaling a potential reversal from the selloff. Price has failed in its last two attempts to break below the .7250 minor psychological support level and is on its way to test...

Forex Signals

Close(SL) Sell USD/CHF @ 0.96803 By Signal Factory
Friday, 31 July 2015 19:00 UTC

Close(SL) Sell USD/CHF @ 0.96803 By Signal Factory | Loss: -39 pips | 2015.07.31 19:00...

Buy AUD/USD @ 0.72963 By Signal Factory
Friday, 31 July 2015 19:00 UTC

Buy AUD/USD @ 0.72963 By Signal Factory | SL:0.72563 | TP:0.73763 | 2015.07.31 18:55...

Buy AUD/JPY @ 90.520 By Signal Factory
Friday, 31 July 2015 19:00 UTC

Buy AUD/JPY @ 90.520 By Signal Factory | SL:90.120 | TP:91.320 | 2015.07.31 18:47...

Buy EUR/USD @ 1.09856 By Signal Factory
Friday, 31 July 2015 18:45 UTC

Buy EUR/USD @ 1.09856 By Signal Factory | SL:1.09456 | TP:1.10656 | 2015.07.31 18:41...

Buy NZD/USD @ 0.65992 By Signal Factory
Friday, 31 July 2015 18:30 UTC

Buy NZD/USD @ 0.65992 By Signal Factory | SL:0.65592 | TP:0.66792 | 2015.07.31 18:25...

Technical Analysis Articles

Tips on Choosing the Right Forex Broker
Wednesday, 29 January 2014 14:43 UTC

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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