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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 October 27, 2014, Technical Analysis
Saturday, 25 October 2014 13:02 UTC

The USD/JPY pair went back and forth during the course of the day on Friday, essentially settling nothing. However, we have broken out above the 107.50 level, and as a result we believe that the market does in fact continue to go higher given...

USD/CAD Forecast October 27, 2014, Technical Analysis
Saturday, 25 October 2014 13:02 UTC

The USD/CAD pair initially fell during the session on Friday but found the 1.12 level to be supportive enough to form a hammer. The hammer of course suggests that the market is going to bounce from here, but ultimately we believe that the market...

GBP/USD Forecast October 27, 2014, Technical Analysis
Saturday, 25 October 2014 13:01 UTC

The GBP/USD pair initially fell during the course of the day on Friday, but found support yet again at the 1.60 level and bounced enough to break the top of the hammer from the Thursday session. This of course is a very positive sign and the fact...

EUR/USD Forecast October 27, 2014, Technical Analysis
Saturday, 25 October 2014 13:00 UTC

The EUR/USD pair tried to rally during the day on Friday, but as you can see pullback significantly in order to form a very neutral candle. This market continues to meander sideways and essentially as an offering much in the way of a trade, and...

AUD/USD Forecast October 27, 2014, Technical Analysis
Saturday, 25 October 2014 12:59 UTC

The AUD/USD pair rose during the course of the session on Friday, testing the 0.88 level. This level has offered resistance previously, and as a result we think it’s only a matter of time before the sellers step in and push it back down. With...

How fast is New Zealand slowing down? – Paxforex
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The New Zealand economy has enjoyed robust growth which can largely be a contributor to its commodity sector and demand from China.  This has allowed the New Zealand Dollar to appreciate in value against other major currencies.  While the economic...

Forex Signals

Close(SL) Sell GBP/NZD @ 2.04881 By Signal Factory
Friday, 24 October 2014 16:15 UTC

Close(SL) Sell GBP/NZD @ 2.04881 By Signal Factory | Loss: -40 pips | 2014.10.24 16:05...

Sell GBP/NZD @ 2.04706 By Signal Factory
Friday, 24 October 2014 16:00 UTC

Sell GBP/NZD @ 2.04706 By Signal Factory | SL:2.05506 | TP:2.03306 | 2014.10.24 15:45...

Close(SL) Sell GBP/CAD @ 1.80410 By Signal Factory
Friday, 24 October 2014 14:15 UTC

Close(SL) Sell GBP/CAD @ 1.80410 By Signal Factory | Loss: -40 pips | 2014.10.24 14:08...

Close(TP) Sell USD/CHF @ 0.95014 By Signal Factory
Friday, 24 October 2014 14:15 UTC

Close(TP) Sell USD/CHF @ 0.95014 By Signal Factory | Profit: +44 pips | 2014.10.24...

Close(SL) Sell NZD/CAD @ 0.88271 By Signal Factory
Friday, 24 October 2014 14:00 UTC

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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...

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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...

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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

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