RSI Swing Failure Gold Setup

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

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

Swing Failure In an Upwards Trend

If the trading RSI hits 79 then retraces to 72, then rises to 76 & finally drops to below 72 this is considered a failure swing RSI setup. Since the 72 level is an RSI support level and it has been penetrated it means that price will and follow and it will penetrate its support area.

In the trading example depicted and explained below, the trading RSI touches 73 then retraces to 56, this is a support level. The gold indicator then rises to 68 and then drops to below 56, thus breaking the support area. The price then follows afterwards breaking it support level. The gold trading RSI swing failure is a leading signal and it is confirmed when price also breaks it support area. Some traders open trade transactions once the swing failure is complete while other gold traders wait for price confirmation, either way it is for a gold trader to decide on what strategy works best for them.

RSI Swing Failure Setup in an Upward Gold Trend

Swing Failure Setup In a Downward Trend

If the RSI touches 20 then retraces to 28, then falls to 24 and finally penetrates above 28, this is regarded a failure swing setup. Since the 28 level is an RSI resistance level & it has been penetrated it means that price will and follow and it will penetrate its resistance zone.

RSI Swing Failure Setup in a Downwards Gold Trend

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