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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 December 18, 2014, Technical Analysis
Thursday, 18 December 2014 08:13 UTC

The USD/JPY pair broke a little bit higher during the session on Wednesday, but as you can see is struggling just above the 117.50 level. With that being the case, we are buyers of this pair on a break above the top of the range for the Wednesday...

USD/CAD Forecast December 18, 2014, Technical Analysis
Thursday, 18 December 2014 08:12 UTC

The USD CAD pair fell rather significantly during the session on Wednesday, but as you can see turned back around and formed a massive hammer. The hammer of course suggests that the market is going to go higher so therefore we think that buying...

GBP/USD Forecast December 18, 2014, Technical Analysis
Thursday, 18 December 2014 08:12 UTC

The GBP/USD pair fell during the session on Wednesday, but for the third day in a row found support below. We ended up bouncing and forming a nice-looking hammer, and that of course suggests that the buyers are about to step back in. With that being...

EUR/USD Forecast December 18, 2014, Technical Analysis
Thursday, 18 December 2014 08:11 UTC

The EUR/USD pair fell during the session on Wednesday, as the 1.25 level has offered resistance yet again. The fall was rather significant, so we feel that we were probably heading back to the bottom of the recent consolidation area, which should...

AUD/USD Forecast December 18, 2014, Technical Analysis
Thursday, 18 December 2014 08:05 UTC

The AUD/USD pair rose during the course of the day on Wednesday, bouncing slightly and breaking above the 0.82 level at one point. However, we think that any rally at this point in time should be a selling opportunity for the Australian dollar, as it...

EURGBP Symmetrical Triangle (Dec 18, 2014)
Thursday, 18 December 2014 04:15 UTC

EURGBP has been moving inside a symmetrical triangle chart pattern since mid-August, as price made higher lows and lower highs. This suggests indecision between buyers and sellers, with a potential breakout in either direction looming. Price has...

Forex Signals

Close(SL) Sell GBP/NZD @ 2.02565 By Signal Factory
Thursday, 18 December 2014 19:00 UTC

Close(SL) Sell GBP/NZD @ 2.02565 By Signal Factory | Loss: -40 pips | 2014.12.18 18:55...

Sell AUD/NZD @ 1.05262 By Signal Factory
Thursday, 18 December 2014 17:30 UTC

Sell AUD/NZD @ 1.05262 By Signal Factory | SL:1.05662 | TP:1.04462 | 2014.12.18 17:19...

Buy GBP/CAD @ 1.81455 By Signal Factory
Thursday, 18 December 2014 17:15 UTC

Buy GBP/CAD @ 1.81455 By Signal Factory | SL:1.81055 | TP:1.82255 | 2014.12.18 17:08...

Sell GBP/NZD @ 2.02165 By Signal Factory
Thursday, 18 December 2014 16:45 UTC

Sell GBP/NZD @ 2.02165 By Signal Factory | SL:2.02565 | TP:2.01365 | 2014.12.18 16:37...

Close(SL) Sell GBP/AUD @ 1.91817 By Signal Factory
Thursday, 18 December 2014 16:15 UTC

Close(SL) Sell GBP/AUD @ 1.91817 By Signal Factory | Loss: -40 pips | 2014.12.18 16:12...

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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