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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

USDCAD Daily Analysis - July 31, 2014
Thursday, 31 July 2014 02:30 UTC

USDCAD's upward movement from 1.0619 extended to as high as 1.0916. Further rise could be expected after a minor consolidation, and next target 1.1000 area. Near term support is at 1.0865, as long as this level holds, the uptrend will continue.

USDCHF Daily Analysis - July 31, 2014
Thursday, 31 July 2014 02:28 UTC

USDCHF continued its upward movement from 0.8897, and the rise extended to as high as 0.9105. Support is now at 0.9050, as long as this level holds, the uptrend could be expected to continue, and next target would be at 0.9150 area. Only break...

USDJPY Daily Analysis - July 31, 2014
Thursday, 31 July 2014 02:28 UTC

USDJPY bounced strongly to as high as 103.08. Further rise could be expected after a minor consolidation, and next target would be at 103,50 area. Support is at 102.60, as long as this level holds, the uptrend will continue.

AUDUSD Daily Analysis - July 31, 2014
Thursday, 31 July 2014 02:27 UTC

AUDUSD broke below 0.9328 support, and reached as low as 0.9302. Further decline is still possible in a couple of days, and next target would be at 0.9250 area. Resistance is at 0.9345, as long as this level holds, the downtrend will continue.

GBPUSD Daily Analysis - July 31, 2014
Thursday, 31 July 2014 02:25 UTC

GBPUSD continued its downward movement from 1.7190, and the fall extended to as low as 1.6889. Resistance is located at the downward trend line on 4-hour chart. As long as the trend line resistance holds, further decline could be expected, and...

EURUSD Daily Analysis - July 31, 2014
Thursday, 31 July 2014 02:24 UTC

EURUSD remains in downtrend from 1.3650, the rise from 1.3366 is likely consolidation of the downtrend. Initial resistance is at the downward trend line on 4-hour chart. As long as the trend line resistance holds, the downtrend could be expected...

Forex Signals

Close(SL) Buy GBP/NZD @ 1.98876 By Signal Factory
Thursday, 31 July 2014 03:15 UTC

Close(SL) Buy GBP/NZD @ 1.98876 By Signal Factory | Loss: -40 pips | 2014.07.31 03:12...

Buy GBP/NZD @ 1.99276 By Signal Factory
Wednesday, 30 July 2014 21:01 UTC

Buy GBP/NZD @ 1.99276 By Signal Factory | SL:1.98876 | TP:2.00076 | 2014.07.30 20:45...

Buy GBP/AUD @ 1.81121 By Signal Factory
Wednesday, 30 July 2014 18:30 UTC

Buy GBP/AUD @ 1.81121 By Signal Factory | SL:1.80721 | TP:1.81921 | 2014.07.30 18:15...

Close(TP) Buy GBP/AUD @ 1.81157 By Signal Factory
Wednesday, 30 July 2014 14:30 UTC

Close(TP) Buy GBP/AUD @ 1.81157 By Signal Factory | Profit: +80 pips | 2014.07.30 14:29...

Close(TP) Buy GBP/AUD @ 1.81126 By Signal Factory
Wednesday, 30 July 2014 14:30 UTC

Close(TP) Buy GBP/AUD @ 1.81126 By Signal Factory | Profit: +80 pips | 2014.07.30 14:29...

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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