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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

Recommended Articles

Daily Forex Reports

USD/CAD Trend Line Retest (April 23, 2014)
Wednesday, 23 April 2014 09:20 UTC

USD/CAD recently broke below a rising trend line on its 4-hour time frame, thanks to weak US non-farm payrolls data and a downbeat FOMC meeting minutes release. However, the pair is showing signs of exhaustion from the selloff and may be ready to...

USDCAD Daily Analysis - April 23, 2014
Wednesday, 23 April 2014 03:40 UTC

USDCAD's upward movement from 1.0857 extended to as high as 1.1042. Support is now at 1.0980, as long as this level holds, the uptrend could be expected to continue, and next target would be at 1.1100 area. Only breakdown 1.0980 support could...

USDCHF Daily Analysis - April 23, 2014
Wednesday, 23 April 2014 03:39 UTC

USDCHF stays above the upward trend line on 4-hour chart, and remains in uptrend from 0.8743. As long as the trend line support holds, the uptrend could be expected to continue, and the target would be at 0.8900 area. Only a clear break below the...

USDJPY Daily Analysis - April 23, 2014
Wednesday, 23 April 2014 03:38 UTC

USDJPY remains in uptrend from 101.32, and the rise extended to as high as 102.72. Further rise is still possible after a minor consolidation, and next target would be at 103.00 area. Support is at the bottom of the price channel on 4-hour chart,...

AUDUSD Daily Analysis - April 23, 2014
Wednesday, 23 April 2014 03:38 UTC

AUDUSD continued its downward movement from 0.9461, and the fall extended to as low as 0.9295. Further decline would likely be seen, and the target would be at 0.9250 area. Key resistance is now at 0.9380, only break above this level could signal...

GBPUSD Daily Analysis - April 23, 2014
Wednesday, 23 April 2014 03:37 UTC

GBPUSD is facing 1.6841 resistance, a break above this level will signal resumption of the uptrend from 1.6465, then the following upward movement could bring price to 1.7000 area. Near term support is now at 1.6770, only break below this level...

Forex Signals

Buy EUR/CAD @ 1.52547 By Signal Factory
Wednesday, 23 April 2014 11:45 UTC

Buy EUR/CAD @ 1.52547 By Signal Factory | SL:1.52147 | TP:1.53347 | 2014.04.23 11:42...

Sell GBP/NZD @ 1.95444 By Signal Factory
Wednesday, 23 April 2014 10:15 UTC

Sell GBP/NZD @ 1.95444 By Signal Factory | SL:1.95844 | TP:1.94644 | 2014.04.23 10:01...

Close Buy EUR/USD @ 1.38513 By Signal Factory
Wednesday, 23 April 2014 08:46 UTC

Close Buy EUR/USD @ 1.38513 By Signal Factory | Profit: +57 pips | 2014.04.23 08:41...

Sell EUR/NZD @ 1.61124 By Signal Factory
Wednesday, 23 April 2014 08:46 UTC

Sell EUR/NZD @ 1.61124 By Signal Factory | SL:1.61460 | TP:1.60264 | 2014.04.23 08:42...

Sell EUR/USD @ 1.38509 By Signal Factory
Wednesday, 23 April 2014 08:45 UTC

Sell EUR/USD @ 1.38509 By Signal Factory | SL:1.38829 | TP:1.37629 | 2014.04.23 08:41...

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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