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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/JPY Forecast May 27, 2015, Technical Analysis
Wednesday, 27 May 2015 06:13 UTC

The USD/JPY pair broke higher during the course of the day on Tuesday, clearing the 122 handle. We are broken out at this point, and we feel that this market then heads to the 125 handle over the course of the next several weeks. We believe that...

USD/CAD Forecast May 27, 2015, Technical Analysis
Wednesday, 27 May 2015 06:13 UTC

The USD/CAD pair broke higher during the course of the session on Tuesday, slicing through the 1.24 level. This is of course in anticipation of the interest-rate coming out of the Bank of Canada, which of course is a market moving event. If we can...

GBP/USD Forecast May 27, 2015, Technical Analysis
Wednesday, 27 May 2015 06:12 UTC

The GBP/USD pair fell initially during the day on Tuesday, but found enough support near the 1.54 level to turn things back around and form a hammer. This is the area that we set had to hold as support in order for the uptrend to continue. Because of...

EUR/USD Forecast May 27, 2015, Technical Analysis
Wednesday, 27 May 2015 06:12 UTC

EUR/USD pair fell during the course of the session on Tuesday, slicing below the 1.09 level. Because of this, we feel the market is ready to go much lower, probably heading towards the lows of the 1.06 handle, or even the lows at the 1.05 handle....

AUD/USD Forecast May 27, 2015, Technical Analysis
Wednesday, 27 May 2015 06:11 UTC

The AUD/USD pair broke down during the day on Tuesday, slicing through the 0.78 level. The market looks very bearish at the moment, but there is a lot of noise just below so quite frankly we feel it’s easier to sell the New Zealand dollar than it is...

USDCHF Area of Interest (May 27, 2015)
Wednesday, 27 May 2015 06:05 UTC

USDCHF is currently testing a potential resistance zone, which is near the broken support at the .9500 major psychological level. If this area holds as a ceiling, price could turn back down and head to its previous lows around the .9100 major...

Forex Signals

Buy GBP/JPY @ 190.134 By Signal Factory
Thursday, 28 May 2015 05:45 UTC

Buy GBP/JPY @ 190.134 By Signal Factory | SL:189.734 | TP:190.934 | 2015.05.28 05:43...

Sell AUD/CAD @ 0.96033 By Signal Factory
Thursday, 28 May 2015 05:45 UTC

Sell AUD/CAD @ 0.96033 By Signal Factory | SL:0.96433 | TP:0.95233 | 2015.05.28 05:35...

Close(SL) Buy CAD/CHF @ 0.76001 By Signal Factory
Thursday, 28 May 2015 05:00 UTC

Close(SL) Buy CAD/CHF @ 0.76001 By Signal Factory | Loss: -40 pips | 2015.05.28 04:56...

Close(TP) Buy GBP/JPY @ 190.570 By Signal Factory
Thursday, 28 May 2015 03:00 UTC

Close(TP) Buy GBP/JPY @ 190.570 By Signal Factory | Profit: +79 pips | 2015.05.28 02:52...

Close(TP) Buy CHF/JPY @ 130.517 By Signal Factory
Thursday, 28 May 2015 02:15 UTC

Close(TP) Buy CHF/JPY @ 130.517 By Signal Factory | Profit: +79 pips | 2015.05.28 02:15...

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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