RSI Indicator Chart Patterns and Gold Trend Lines

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

RSI Trend Lines & Trend lines on Gold Charts

RSI Patterns in XAUUSD Trading

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

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

Patterns on RSI Chart Technical Indicator

Support and Resistance Levels Trading using RSI Indicator

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

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

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

Support & Resistance Zones on RSI Technical Indicator

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