RSI Trading Indicator Index Chart Pattern Setups & Indices Trend Lines

Index traders can plot trend lines on the RSI in the same way as you as a stock indices trader can plot trend lines on the price charts. RSI trend lines are plotted the same way trend lines are plotted on the chart; by joining consecutive highs of the RSI indicator or consecutive lows in the RSI Indicator.

RSI Chart Setups and RSI Trend Lines

RSI Trend Lines and Index Trend lines in Index Charts

RSI Patterns in Index Trading

RSI Chart patterns like head and shoulders patterns or triangle chart patterns which are not evident on the price chart are often formed on this RSI indicator.

RSI indicator also often forms Index chart patterns like a head and shoulders or triangles chart patterns that may or may not be visible on the price chart. As displayed & shown on the chart below the Reverse/Inverse Head and Shoulders reversal setup formation is clearly shown on this RSI indicator.

Index Patterns on RSI Chart Indicator

Support & Resistance Levels using RSI Indicator

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

In an upward trend the support levels shouldn't be broken at any one time, if they are broken then price will also break the support levels and the upward market trend is going to reverse.

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

Support & Resistance Levels on RSI Indicator

In the illustration displayed above when the third resistance level was broken the downward trend reversed to an upwards trend and when the sixth support was broken the upward market trend reversed & broke the upwards trend line.

Study More Topics and Tutorials:

Trade Stock Indices

RSI Trading Indicator Index Chart Pattern Setups & Indices Trend Lines

RSI Patterns in Index Trading

Support & Resistance Levels using RSI Indicator