RSI Patterns & Trend-Lines
Traders can draw trend-lines on the RSI in the same way as you as a trader can draw trend-lines on the price charts. RSI trend lines are drawn the same way trend lines are drawn on the chart; by joining consecutive highs of the RSI or consecutive lows on the RSI Indicator.
RSI Trendlines & Trend lines on XAU USD Charts
RSI Patterns in XAU USD Trading
RSI Chart patterns such as head and shoulders chart patterns or triangle patterns that aren't evident on the price chart are often formed on this RSI indicator.
RSI also often forms patterns such as head & shoulders or triangles patterns that might or might not be visible on the price chart. As shown & displayed on the chart below the Inverse Head and Shoulders reversal formation is clearly shown on this RSI indicator.
Patterns on RSI Chart Indicator
Support & Resistance Areas using RSI Indicator
Sometimes chart levels of support and resistance zones are demonstrated better on the RSI than on the price chart.
In an upward market trend the support levels shouldn't be broken at any one time, if they are broken then price also will break the support levels & the upward trend is going to reverse.
In a downward trend the resistance zones shouldn't be broken, if they are broken then price will also break the resistance zones, & the downwards trend is going to reverse.
Support & Resistance Zones on RSI Indicator
In the example illustration displayed above when the third resistance zone was broken the downwards trend reversed to an upward trend and when the sixth support was broken the upward market trend reversed & broke the upward trendline.
Learn More Topics & Courses:
- Market Execution of Gold Orders Described with Examples
- What's an Example illustration of a Upward XAUUSD Trend?
- How Can I Trade Ehler Relative Strength Index Indicator?
- How Do I Draw Downward XAUUSD Channel in MetaTrader 4 Chart?
- Parabolic SAR Crossover Trading Strategies
- How to Trade XAUUSD
- How Can I Draw Fibonacci Extension Levels on Upwards XAUUSD Trend?
- Learn XAU/USD Tutorial Lesson for Beginners