RSI Swing Failure Gold Trading Setup
RSI gold trading swing failure can be a very accurate method for trading short term gold trading moves. It can also be used for trading long term gold trading trends but it is best suited for short term gold trading especially for those gold traders that trade reversals.
The RSI swing failure swing gold trading setup is a confirmation of a pending gold trading market reversal. This gold trading swing failure setups a leading breakout signal, it warns that a support or resistance level in the gold trading market is going to be penetrated. This gold trading setup should occur at values above 70 for an upward gold trading trend and values below 30 in a downward gold trading trend.
Swing Failure In an Upward Gold Trend
If the gold trading RSI Gold Trading Indicator hits 79 then pulls back to 72, then rises to 76 and finally drops to below 72 this is considered a failure swing gold trading RSI setup. Since the 72 level is an RSI support level and it has been penetrated it means that gold price will and follow and it will penetrate its support level.
In the gold trading example below, the gold trading RSI indicator hits 73 then pulls back to 56, this is a support level. The gold trading indicator then rises to 68 and then drops to below 56, thus breaking the support level. The gold trading price then follows afterwards breaking it support level. The gold trading RSI swing failure is a leading gold trading signal and it is confirmed when gold price also breaks it support level. Some gold traders open trades once the swing failure is complete while other gold traders wait for gold price confirmation, either way it is for a gold trader to decide what work best for them.
Gold RSI Swing Failure Setup in an Upward Gold Trend
Swing Failure In a Downward Gold Trend
If the gold trading RSI Gold Trading Indicator hits 20 then pulls back to 28, then falls to 24 and finally penetrates above 28, this is considered a failure swing setup. Since the 28 level is an RSI resistance level and it has been penetrated it means that gold trading price will and follow and it will penetrate its resistance level.
Gold RSI Swing Failure Setup in a Downward Gold Trend