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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

AUDCAD Reversal Pattern (Oct 22, 2014)
Wednesday, 22 October 2014 06:14 UTC

A short-term selloff might be in the cards for AUDCAD, as the pair created a double top pattern on its 1-hour time frame. Price has found resistance at the .9950 mark and is finding support at the neckline around .9850. A break below this support zone...

USD/CAD Forecast October 22, 2014, Technical Analysis
Wednesday, 22 October 2014 05:05 UTC

USD/CAD fell during the course of the session on Tuesday, testing the 1.12 level. This is an area that is an area we anticipated to see a significant amount of support at, and we most certainly did see that. We bounce slightly, but we believe that there...

USD/JPY Forecast October 22, 2014, Technical Analysis
Wednesday, 22 October 2014 05:04 UTC

The USD/JPY pair initially fell during the session on Tuesday, but found enough support below to turn things back around and form a little bit of a hammer. Because of that, we feel that this market will go higher and on a move above the 107 level...

GBP/USD Forecast October 22, 2014, Technical Analysis
Wednesday, 22 October 2014 05:02 UTC

The GBP/USD pair fell slightly during the session on Tuesday, showing that we are in fact going to have to fight our way higher. The weekly candle was a hammer, and although we have not broken the top of that, it does appear that the market will try...

EUR/USD Forecast October 22, 2014, Technical Analysis
Wednesday, 22 October 2014 05:01 UTC

The EUR/USD pair fell during the course of the day on Tuesday, showing the 1.28 level to be resistive yet again. The 1.28 level is the beginning of significant resistance, extending all the way to the 1.30 level as far as we can see. Because of...

AUD/USD Forecast October 22, 2014, Technical Analysis
Wednesday, 22 October 2014 05:00 UTC

The AUD/USD pair fell during the course of the day on Tuesday, showing the 0.88 level as being resistive. Because of this, we recognize that the sellers may step back in, and if we break down below the bottom of the candle for the session on...

Forex Signals

Close(SL) Sell GBP/JPY @ 172.393 By Signal Factory
Wednesday, 22 October 2014 15:16 UTC

Close(SL) Sell GBP/JPY @ 172.393 By Signal Factory | Loss: -40 pips | 2014.10.22 15:14...

Close(SL) Sell AUD/USD @ 0.88120 By Signal Factory
Wednesday, 22 October 2014 15:15 UTC

Close(SL) Sell AUD/USD @ 0.88120 By Signal Factory | Loss: -40 pips | 2014.10.22 15:10...

Close(SL) Sell GBP/CHF @ 1.53009 By Signal Factory
Wednesday, 22 October 2014 15:15 UTC

Close(SL) Sell GBP/CHF @ 1.53009 By Signal Factory | Loss: -40 pips | 2014.10.22 15:10...

Sell GBP/USD @ 1.60698 By Signal Factory
Wednesday, 22 October 2014 15:15 UTC

Sell GBP/USD @ 1.60698 By Signal Factory | SL:1.61098 | TP:1.59898 | 2014.10.22 15:14...

Close(SL) Buy AUD/CAD @ 0.98348 By Signal Factory
Wednesday, 22 October 2014 14:30 UTC

Close(SL) Buy AUD/CAD @ 0.98348 By Signal Factory | Loss: -40 pips | 2014.10.22 14:26...

Technical Analysis Articles

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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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