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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

Recommended Articles

Daily Forex Reports

USD/JPY Forecast July 1, 2015, Technical Analysis
Wednesday, 01 July 2015 06:16 UTC

The USD/JPY pair went back and forth during the course of the session on Tuesday, ultimately settling nothing. That’s not a big surprise though, because the 122 level has been so supportive in the past. With that being the case, we feel that if we...

USD/CAD Forecast July 1, 2015, Technical Analysis
Wednesday, 01 July 2015 06:16 UTC

The USD/CAD pair initially fell during the course of the session on Tuesday, but found enough support to turn things much higher. We tested the 1.25 level above, as it is of course a large number, but at the end of the day we think that it is...

GBP/USD Forecast July 1, 2015, Technical Analysis
Wednesday, 01 July 2015 06:15 UTC

The GBP/USD pair went back and forth during the course of the day on Tuesday, bouncing off the 1.57 level again. This is an area that looks like it is rather supportive, so at this point in time we are probably just going to go sideways. However,...

EUR/USD Forecast July 1, 2015, Technical Analysis
Wednesday, 01 July 2015 06:15 UTC

Although the EUR/USD pair had a slightly negative session on Tuesday, the fact of the matter is that we bounced hard enough on Monday to suggest that there is quite a bit of buying pressure underneath. With that being the case, the market should...

AUD/USD Forecast July 1, 2015, Technical Analysis
Wednesday, 01 July 2015 06:14 UTC

The AUD/USD pair rose during the course of the session on Tuesday, as we continue to consolidate between the 0.76 level on the bottom, and the 0.78 level on the top. With that, we are not necessarily interested in trading this market, and think...

AUDUSD Range Resistance (July 1, 2015)
Wednesday, 01 July 2015 05:28 UTC

AUDUSD recently bounced off its long-term support at the .7600 major psychological level and could be ready to test the top of the range again. Price is moving up towards the resistance at .7800, which might keep gains in check. The top of the...

Forex Signals

Close(TP) Sell GBP/USD @ 1.56405 By Signal Factory
Wednesday, 01 July 2015 10:45 UTC

Close(TP) Sell GBP/USD @ 1.56405 By Signal Factory | Profit: +80 pips | 2015.07.01...

Buy CAD/CHF @ 0.75174 By Signal Factory
Wednesday, 01 July 2015 10:45 UTC

Buy CAD/CHF @ 0.75174 By Signal Factory | SL:0.74774 | TP:0.75974 | 2015.07.01 10:32...

Sell GBP/JPY @ 192.261 By Signal Factory
Wednesday, 01 July 2015 10:45 UTC

Sell GBP/JPY @ 192.261 By Signal Factory | SL:192.661 | TP:191.461 | 2015.07.01 10:30...

Close(SL) Buy CHF/JPY @ 130.720 By Signal Factory
Wednesday, 01 July 2015 10:15 UTC

Close(SL) Buy CHF/JPY @ 130.720 By Signal Factory | Loss: -40 pips | 2015.07.01 10:05...

Sell CHF/JPY @ 131.099 By Signal Factory
Wednesday, 01 July 2015 09:30 UTC

Sell CHF/JPY @ 131.099 By Signal Factory | SL:131.499 | TP:130.299 | 2015.07.01 09:19...

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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