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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 Reversal Formation (August 27, 2014)
Wednesday, 27 August 2014 08:31 UTC

USDCAD seems to be exhausted from ts recent climb, as a reversal chart pattern can be seen on its 4-hour time frame. The pair is forming a double top after failing to break past the 1.1000 major psychological level in a couple of attempts. Price...

USD/JPY Forecast August 27, 2014, Technical Analysis
Wednesday, 27 August 2014 06:06 UTC

The USD/JPY pair initially fell during the day on Tuesday, but found enough support to turn things back around and form a nice-looking hammer. This is the second hammer in a row on the daily chart, so we feel that the market is ready to go higher...

USD/CAD Forecast August 27, 2014, Technical Analysis
Wednesday, 27 August 2014 06:06 UTC

The USD/CAD pair fell during the course of the day on Tuesday, testing the bottom of the hammer that had formed on Monday. That being the case though, we simply look as if we are going sideways for the time being, and we believe that there is...

GBP/USD Forecast August 27, 2014, Technical Analysis
Wednesday, 27 August 2014 06:05 UTC

The GBP/USD pair initially went higher during the course of the day on Tuesday, only to find the 1.66 level a bit too resistive to continue the move higher. With that, we have formed to shooting stars in a row, meaning that British pound continues to...

EUR/USD Forecast August 27, 2014, Technical Analysis
Wednesday, 27 August 2014 06:04 UTC

The EUR/USD pair tried to rally initially during the day on Tuesday, but as you can see the 1.32 area has offered resistance again. With that being the case, the market seems like it’s ready to continue the move downwards, especially considering that...

AUD/USD Forecast August 27, 2014, Technical Analysis
Wednesday, 27 August 2014 05:58 UTC

The AUD/USD pair tried to go higher during the course of the day on Tuesday, and did gain a bit. However, you can see that we continue to hang about the 0.93 level, as the consolidation area has been rather tight. With that being the case, if we can...

Forex Signals

Close Buy USD/CAD @ 1.08561 By Signal Factory
Wednesday, 27 August 2014 18:00 UTC

Close Buy USD/CAD @ 1.08561 By Signal Factory | Loss: -103 pips | 2014.08.27 20:49...

Sell EUR/NZD @ 1.57797 By Signal Factory
Wednesday, 27 August 2014 15:00 UTC

Sell EUR/NZD @ 1.57797 By Signal Factory | SL:1.58197 | TP:1.56997 | 2014.08.27 14:58...

Close(SL) Buy GBP/NZD @ 1.98308 By Signal Factory
Wednesday, 27 August 2014 00:45 UTC

Close(SL) Buy GBP/NZD @ 1.98308 By Signal Factory | Loss: -40 pips | 2014.08.27 00:32...

Close(SL) Buy EUR/NZD @ 1.57874 By Signal Factory
Tuesday, 26 August 2014 22:45 UTC

Close(SL) Buy EUR/NZD @ 1.57874 By Signal Factory | Loss: -40 pips | 2014.08.26 22:37...

Close Sell EUR/USD @ 1.31691 By Signal Factory
Tuesday, 26 August 2014 17:45 UTC

Close Sell EUR/USD @ 1.31691 By Signal Factory | Profit: +96 pips | 2014.08.26 20:37...

Technical Analysis Articles

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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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