Failure swings are independent of price action, and are formed solely on the RSI chart. According to Wilder, they provide strong indications of an impending reversal. A bullish failure swing takes place when RSI moves below 30 (oversold), then bounces up above it, pulls back, but holds above the oversold line and then breaks its prior high. A bearish failure swing forms when RSI moves above 70 (overbought), pulls back, forms a lower high below the overbought line, and then breaks its prior low.
PT. Mentari Mulia Berjangka | Broker FOREX Terbaik« Back to Glossary Index