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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 May 5, 2015, Technical Analysis
Tuesday, 05 May 2015 06:13 UTC

The USD/JPY pair initially tried to rally during the course of the session on Monday, but as you can see really kind of failed to pick up any type of momentum going higher. With that, the market would more than likely pullback from here, because...

USD/CAD Forecast May 5, 2015, Technical Analysis
Tuesday, 05 May 2015 06:12 UTC

The USD/CAD pair broke down during the course of the session on Monday, testing the 1.21 level. However, we see the 1.20 level below as massively supportive, so having said that we don’t really have any interest in selling, and we believe that...

GBP/USD Forecast May 5, 2015, Technical Analysis
Tuesday, 05 May 2015 06:12 UTC

The GBP/USD pair initially fell during the day on Monday, but found a little bit of support below in order to form something along the lines of a hammer. With this, we believe that the market is going to continue to fight in this general vicinity, but...

EUR/USD Forecast May 5, 2015, Technical Analysis
Tuesday, 05 May 2015 06:11 UTC

The EUR/USD pair had a negative session on Monday, as the 100 day exponential moving average offered dynamic resistance. On top of that, the shooting star that informed on Friday showed signs of resistance at the 1.12 level. The 38.2% Fibonacci...

AUD/ USD Forecast May 5, 2015, Technical Analysis
Tuesday, 05 May 2015 06:10 UTC

The AUD/USD pair initially fell during the course of the session on Monday, but found enough support to turn things back around and go higher. With this, we ended up forming a hammer for the session, and it now looks as if the Aussie will try to...

GBPJPY Long-Term Triangle (May 5, 2015)
Tuesday, 05 May 2015 04:46 UTC

On its daily time frame, GBPJPY has formed lower highs and found support at the 176.00 major psychological level. A descending triangle chart pattern appears to be forming, as the pair is currently testing the top of the formation. If this area...

Forex Signals

Close(SL) Sell GBP/CHF @ 1.41768 By Signal Factory
Tuesday, 05 May 2015 07:30 UTC

Close(SL) Sell GBP/CHF @ 1.41768 By Signal Factory | Loss: -40 pips | 2015.05.05 07:28...

Sell USD/CAD @ 1.21164 By Signal Factory
Tuesday, 05 May 2015 07:15 UTC

Sell USD/CAD @ 1.21164 By Signal Factory | SL:1.21564 | TP:1.20364 | 2015.05.05 07:10...

Sell GBP/USD @ 1.51120 By Signal Factory
Tuesday, 05 May 2015 07:00 UTC

Sell GBP/USD @ 1.51120 By Signal Factory | SL:1.51520 | TP:1.50320 | 2015.05.05 06:55...

Close(SL) Sell GBP/NZD @ 2.00701 By Signal Factory
Tuesday, 05 May 2015 04:50 UTC

Close(SL) Sell GBP/NZD @ 2.00701 By Signal Factory | Loss: -40 pips | 2015.05.05 04:45...

Close(SL) Buy CHF/JPY @ 128.347 By Signal Factory
Tuesday, 05 May 2015 04:49 UTC

Close(SL) Buy CHF/JPY @ 128.347 By Signal Factory | Loss: -40 pips | 2015.05.05 04:41...

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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
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