RSI Indicator Stock Index Patterns and Stock Indices Trend Lines

Traders can draw stock indices trend lines on the RSI in the same way as you can draw stock indices trend lines on the stock index price charts. RSI stock indices trend lines are drawn the same way stock indices trend lines are drawn on the stock index chart; by joining consecutive highs of the RSI indicator or consecutive lows on the RSI stock indices Indicator.

RSI Stock Indices Trend Lines & Stock Indices Trend lines on Stock Indices Charts

RSI Stock Index Chart Patterns in Stock Indices

RSI Chart patterns such as head and shoulders stock indices chart patterns or triangle chart patterns that are not evident on the stock index price chart are often formed on this RSI stock index trading technical indicator.

RSI indicator also often forms stock indices patterns such as head & shoulders or triangles stock indices chart patterns that may or may not be visible on the stock index price chart. As shown on the stock index chart below the Reverse Head and Shoulders reversal formation is clearly shown on this stock indices RSI indicator.

Stock Index Chart Patterns on RSI Stock Index Chart Technical Indicator

Support and Resistance Levels Trading using RSI Indicator

Sometimes stock indices chart levels of support and resistance levels are demonstrated better on the RSI indicator than on the stock index price chart.

In an upward stock indices market trend the support levels should not be broken at any one time, if they are broken then stock index price will also break the support levels & the upward trend is going to reverse.

In a downward stock indices trend the resistance levels should not be broken, if they are broken then stock index price will also break the resistance levels, and the downward stock indices trend is going to reverse.

Support and Resistance Levels on RSI Technical Indicator

In the stock indices example above when the third resistance level was broken the downward stock indices trend reversed to an upward stock indices trend and when the sixth support was broken the upward stock indices market stock indices trend reversed and broke the upward trend line.