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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

AUDUSD Descending Trend Line (Nov 27, 2014)
Thursday, 27 November 2014 04:00 UTC

AUDUSD might be in for another major retracement, as price could make its way up to the falling trend line connecting the latest highs of price action. The pair previously broke through support around the .8700-.8800 major psychological mark and...

USD/JPY Forecast November 26, 2014, Technical Analysis
Wednesday, 26 November 2014 05:05 UTC

The USD/JPY pair initially tried to rally during the session on Tuesday, but as you can see continue to simply go sideways. The marketplace will probably do very little over the next 24 hours, as the Americans had off towards their Thanksgiving...

USD/CAD Forecast November 26, 2014, Technical Analysis
Wednesday, 26 November 2014 05:05 UTC

The USD/CAD pair tried to break above the 1.13 level during the session on Tuesday, but ended up falling. That being the case, we ended up forming a negative candle but we believe that the market is simply trying to build up enough momentum to go...

GBP/USD Forecast November 26, 2014, Technical Analysis
Wednesday, 26 November 2014 05:04 UTC

The GBP/USD went back on forth on Tuesday, but continues to struggle at the 1.57 level. The area just above should continue to offer resistance, and we feel that the 1.60 level is where the resistance goes to. The pair is most certainly bearish,...

EUR/USD Forecast November 26, 2014, Technical Analysis
Wednesday, 26 November 2014 05:04 UTC

The EUR/USD pair initially fell during the course of the session on Tuesday, but ended up heading back towards the 1.25 handle. It’s actually the 1.26 level that we think that the significant resistance will come back into play and pushes market back...

AUD/USD Forecast November 26, 2014, Technical Analysis
Wednesday, 26 November 2014 05:02 UTC

The AUD/USD pair has broken down below the recent low, and looks as if it’s ready to head down to the 0.85 handle. That area should be massively supportive, as the market should continue to go lower from there. We believe that ultimately if we can...

Forex Signals

Buy NZD/CAD @ 0.88693 By Signal Factory
Thursday, 27 November 2014 14:00 UTC

Buy NZD/CAD @ 0.88693 By Signal Factory | SL:0.88293 | TP:0.89493 | 2014.11.27 13:54...

Buy USD/CHF @ 0.96330 By Signal Factory
Thursday, 27 November 2014 13:45 UTC

Buy USD/CHF @ 0.96330 By Signal Factory | SL:0.95304 | TP:0.96990 | 2014.11.27 15:43...

Sell GBP/USD @ 1.57444 By Signal Factory
Thursday, 27 November 2014 13:45 UTC

Sell GBP/USD @ 1.57444 By Signal Factory | SL:1.58472 | TP:1.56800 | 2014.11.27 15:43...

Sell EUR/USD @ 1.24779 By Signal Factory
Thursday, 27 November 2014 13:45 UTC

Sell EUR/USD @ 1.24779 By Signal Factory | SL:1.25799 | TP:1.24000 | 2014.11.27 15:42...

Sell EUR/JPY @ 146.812 By Signal Factory
Thursday, 27 November 2014 13:15 UTC

Sell EUR/JPY @ 146.812 By Signal Factory | SL:147.212 | TP:146.012 | 2014.11.27 13:03...

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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