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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 Weekly Analysis - May 1, 2016
Sunday, 01 May 2016 08:19 UTC

USDCAD continued its downward movement from 1.4689, and the fall extended to as low as 1.2499. Further decline is still possible over the next several weeks, and next target would be at 1.2000 area. Resistance is at the downward trend line on...

USDJPY Weekly Analysis - May 1, 2016
Sunday, 01 May 2016 08:19 UTC

After consolidation, USDJPY continued tis downward movement from 123.75, and the fall extended to as low as 106.27. Near term resistance is at the downward trend line on daily chart, and the key resistance is at 111.88, only break above this level...

AUDUSD Weekly Analysis - May 1, 2016
Sunday, 01 May 2016 08:18 UTC

AUDUSD broke below the support of the upward price channel on daily chart. Deeper decline to test 0.7450 key support is possible next week, a breakdown below this level will indicate that the uptrend from 0.6826 had completed at 0.7834 already,...

GBPUSD Weekly Analysis - May 1, 2016
Sunday, 01 May 2016 08:18 UTC

GBPUSD is facing 1.4668 resistance, a break of this level will indicate that the downtrend from 1.5929 (Jun 18, 2015 high) had completed at 1.3835 already, then the following upward movement could bring price to 1.5300 area. On the other side, as...

EURUSD Weekly Analysis - May 1, 2016
Sunday, 01 May 2016 08:17 UTC

EURUSD remains in uptrend from 1.0517. Further rise could be expected after a minor consolidation, and next target would be at 1.2000 area. Near term support is at 1.1100, and the key support is located at the upward trend line on daily chart,...

EUR/USD Forecast May 2, 2016, Technical Analysis
Saturday, 30 April 2016 14:04 UTC

The EUR/USD pair broke higher during the course of the session on Friday, as it looks like we are getting ready to break towards the 1.15 handle. Pullbacks at this point in time will be buying opportunities on signs of support and as a result we...

Forex Signals

Sell USD/CHF @ 0.95950 By Signal Factory
Monday, 02 May 2016 07:15 UTC

Sell USD/CHF @ 0.95950 By Signal Factory | SL:0.96350 | TP:0.95150 | 2016.05.02 07:14...

Sell EUR/NZD @ 1.63780 By Signal Factory
Monday, 02 May 2016 07:00 UTC

Sell EUR/NZD @ 1.63780 By Signal Factory | SL:1.64180 | TP:1.62980 | 2016.05.02 06:50...

Buy GBP/USD @ 1.46250 By Signal Factory
Monday, 02 May 2016 06:45 UTC

Buy GBP/USD @ 1.46250 By Signal Factory | SL:1.45850 | TP:1.47050 | 2016.05.02 06:40...

Buy NZD/CAD @ 0.87682 By Signal Factory
Monday, 02 May 2016 03:00 UTC

Buy NZD/CAD @ 0.87682 By Signal Factory | SL:0.87282 | TP:0.88482 | 2016.05.02 02:51...

Close(SL) Buy GBP/CAD @ 1.82918 By Signal Factory
Sunday, 01 May 2016 21:30 UTC

Close(SL) Buy GBP/CAD @ 1.82918 By Signal Factory | Loss: -40 pips | 2016.05.01 21:22...

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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