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RSI Patterns & Trend-Lines

Traders can draw trend-lines on the RSI in the same way as you 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.

XAUUSD RSI Setups - How to Add RSI in Chart

RSI Trendlines & Trend lines on XAU USD Charts

RSI Patterns in XAU USD Trading

RSI often shows patterns like head and shoulders or triangles. These appear clear on the RSI indicator but hide on the price chart.

RSI frequently forms recognizable patterns, such as head & shoulders or triangles, which may not always be apparent on the price chart itself. Below, the displayed chart clearly highlights an Inverse Head and Shoulders reversal pattern on this RSI indicator.

Trend Lines on RSI - How to Set RSI in Chart on Software Platform

Patterns on RSI Chart Indicator

Support & Resistance Areas using RSI Indicator

Sometimes chart levels of support and resistance areas are shown better on the RSI than they are on the actual price chart.

Within an advancing market trend, support boundaries should remain unbroken: should a break occur, the price will decisively breach these support levels, causing the preceding uptrend to reverse direction.

In a prevailing downtrend, resistance levels should remain unbroken: a breach of these zones implies that the price is likely to overcome those resistance levels, signaling an imminent reversal of the downward trend.

XAUUSD RSI Setups

Support & Resistance Zones on RSI Indicator

When the third resistance zone in the illustration above was broken, the downward trend turned into an upward trend, and when the sixth support was broken, the upward market trend reversed, breaking the upward trendline.

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