RSI Indicator Stock Patterns and Stocks Trend Lines

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

RSI Stocks Trend Lines and Stocks Trend lines on Stocks Charts

RSI Stock Chart Patterns in Stocks

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

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

Stock Chart Patterns on RSI Stock Chart Technical Indicator

Support & Resistance Levels Trading using RSI Indicator

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

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

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

Support and Resistance Levels on RSI Technical Indicator

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