RSI Indicator Forex Chart Patterns & Trend Lines
Forex traders can plot trend lines on the RSI in the same way as you can plot trend lines on the forex price charts. RSI trend lines are plotted the same way forex trend lines are plotted on the forex chart; by joining consecutive highs of the RSI indicator or consecutive lows on the RSI forex Indicator.
RSI Trend Lines & Forex Trend lines on Forex Charts
RSI Chart Patterns in Forex Trading
RSI Chart patterns such as head and shoulders chart patterns or triangle chart patterns that are not evident on the forex price chart are often formed on this RSI indicator.
RSI indicator also often forms forex patterns such as head and shoulders or triangles chart patterns that may or may not be visible on the forex price chart. As shown on the forex chart below the Reverse Head and Shoulders reversal formation is clearly shown on this forex RSI indicator.
Forex Chart Patterns on RSI Forex Chart Technical Indicator
Support and Resistance Levels Trading using RSI Indicator
Sometimes forex chart levels of support and resistance levels are demonstrated better on the RSI indicator than on the forex price chart.
In an upward forex market trend the support levels should not be broken at any one time, if they are broken then price will also break the support levels & the upward trend is going to reverse.
In a downward forex trend the resistance levels should not be broken, if they are broken then price will also break the resistance levels, and the downward forex trend is going to reverse.
Support & Resistance Levels on RSI Technical Indicator
In the forex trading example above when the third resistance level was broken the downward forex trend reversed to an upward forex trend and when the sixth support was broken the upward forex market trend reversed and broke the upward trend line.
