Trade Gold Trading

RSI Swing Failure Gold Setup

RSI swing failure works well for short gold trades. It fits reversals best, though it can handle longer trends too.

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 Relative Strength Index (RSI) peaks at 79, drops to 72, rises again to 76, and then falls below 72, this pattern is identified as a failure swing RSI setup. Since 72 represents an RSI support level that has been broken, further price movement is expected to penetrate this area of support.

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 its 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 Strategy Example Explained PDF

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 Strategy Described Lesson Tutorial

RSI Swing Failure Setup in a Downwards Gold Trend

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