RSI Stock Indicator Patterns & Stock Trend Lines

Traders can draw stock trend lines on the RSI in the same way as you can draw stock trend lines on the stocks price charts. RSI stock trend lines are drawn the same way stock trend lines are drawn on the stock chart; by joining consecutive highs of the RSI indicator or consecutive lows on the RSI stock trading Indicator.

RSI Stock Trend-Lines & Stock Trend lines on Stock Charts

RSI Stocks Chart Patterns in Stocks Trading

RSI Chart patterns such as head and shoulders stocks chart patterns or triangle stock trading chart patterns that are not evident on the stocks price chart are often formed on this RSI indicator.

RSI indicator also often forms stocks patterns such as head and shoulders or triangles stocks chart patterns that may or may not be visible on the stocks price chart. As shown on the stock chart below the Reverse Head and Shoulders reversal formation is clearly shown on this stock trading RSI indicator.

Stock Chart Patterns on RSI Stock Chart Technical Indicator

Support & Resistance Levels Trading using RSI Technical Indicator

Sometimes stock chart levels of support and resistance levels are demonstrated better on the RSI indicator than on the stock price chart.

In an upward stock market trend the support levels should not be broken at any one time, if they are broken then stocks price will also break the support levels & the upward stock trend is going to reverse.

In a downward stock trend the resistance levels should not be broken, if they are broken then stocks price will also break the resistance levels, and the downward stock trend is going to reverse.

Support & Resistance Levels on RSI Technical Indicator

In the stocks trading example above when the third resistance level was broken the downward stock trend reversed to an upward stock trend and when the sixth support was broken the upward stock market trend reversed and broke the upward stock trend line.