RSI Indicator Stock Indices Chart Patterns & Indices Trend Lines
Traders can draw indices trend lines on the RSI in the same way as you can draw indices trend lines on the stock indices price charts. RSI indices trend lines are drawn the same way indices trend lines are drawn on the indices chart; by joining consecutive highs of the RSI indicator or consecutive lows on the RSI indices Indicator.
RSI Indices Trend Lines & Indices Trend lines on Indices Charts
RSI Indices Chart Patterns in Indices Trading
RSI Chart patterns such as head and shoulders stock indices chart patterns or triangle stock indices trading chart patterns that are not evident on the stock indices price chart are often formed on this RSI indicator.
RSI indicator also often forms stock indices patterns such as head and shoulders or triangles stock indices chart patterns that may or may not be visible on the stock indices price chart. As shown on the stock indices chart below the Reverse Head and Shoulders reversal formation is clearly shown on this indices trading RSI indicator.
Indices Chart Patterns on RSI Indices Technical Chart Technical Indicator
Support and Resistance Levels Trading using RSI Indicator
Sometimes stock indices chart levels of support and resistance levels are demonstrated better on the RSI indicator than on the stock indices price chart.
In an upward stock indices market trend the support levels should not be broken at any one time, if they are broken then stock indices price will also break the support levels & the upward trend is going to reverse.
In a downward indices trend the resistance levels should not be broken, if they are broken then stock indices price will also break the resistance levels, and the downward indices trend is going to reverse.
Support & Resistance Levels on RSI Technical Indicator
In the stock indices trading example above when the third resistance level was broken the downward indices trend reversed to an upward indices trend and when the sixth support was broken the upward stock indices market indices trend reversed and broke the upward trend line.