RSI Swing Failure Oil Trading Setup

RSI oil trading swing failure can be a very accurate method for trading short term oil trading moves. It can also be used for trading long term oil trends but it is best suited for short term oil trading especially for those oil traders that trade reversals.

The RSI swing failure swing crude oil trading setup is a confirmation of a pending oil market reversal. This oil trading swing failure setups a leading breakout signal, it warns that a support or resistance level in the crude oil market is going to be penetrated. This crude oil trading setup should occur at values above 70 for an upward oil trend and values below 30 in a downward oil trend.

Swing Failure In an Upwards Oil Trading Trend

If the oil trading RSI Oil Technical Indicator hits 79 then pulls back to 72, then rises to 76 and finally drops to below 72 this is considered a failure swing oil trading RSI setup. Since the 72 level is an RSI support level and it has been penetrated it means that crude oil price will and follow and it will penetrate its support level.

In the crude oil trading example explained below, the oil trading RSI indicator hits 73 then pulls back to 56, this is a support level. The oil indicator then rises to 68 and then drops to below 56, thus breaking the support level. The crude oil price then follows afterwards breaking it support level. The oil trading RSI swing failure is a leading oil signal and it is confirmed when crude oil price also breaks it support level. Some traders open trades once the swing failure is complete while other oil traders wait for crude oil price confirmation, either way it is for a trader to decide what work best for them.

Oil Trading RSI Swing Failure Setup in an Upward Oil Trading Trend

Swing Failure In a Downwards Oil Trading Trend

If the oil trading RSI Oil Technical Indicator hits 20 then pulls back to 28, then falls to 24 and finally penetrates above 28, this is considered a failure swing setup. Since the 28 level is an RSI resistance level and it has been penetrated it means that crude oil price will and follow and it will penetrate its resistance level.

Oil Trading RSI Swing Failure Setup in a Downward Oil Trading Trend