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  • The latest US Conference Board consumer confidence fell to the lowest level since February, the headline reading dropping to 109.3, below expectations for 114.5. Get your $USD market update from @JMcQueenFX here:
  • $SPX Daily . . Know the Levels. . . #SPX
  • ...that said, I like volatility; so by all means, bring in a person that gets these markets rocking and rolling again
  • Saying Powell is a dangerous man is disingenuous. The Fed has done very well with its dual mandate and their efforts to steady the markets for Main and Wall Street has further fed the financial bubbles we continue to blow. $VIX
  • Fed's Powell: The Fed will not be able to shield financial markets and the economy from the fallout of a US default $USD $ES_F $SPX
  • ...also worth noting, this is the Cable's biggest dive (-1.15% at present) since Sep 10, 2020
  • While EURUSD is still holding the floor on its nearly year-long range, $GBPUSD looks like it is making a play for its head-and-shoulders 'neckline' break with this 1.3600 break
  • With the charge in Treasury yields after the debt ceiling warning today, I'm going to move the likes of $TLT (the iShares 20+ year Treasury ETF) closer to the top of my watch list. Let's see where volume ends up today
  • AUD/USD appears to be stuck in a narrow range following the kneejerk reaction to the Federal Reserve interest rate decision. Get your $AUDUSD market update from @DavidJSong here:
RSI Interpretation

RSI Interpretation

Richard Krivo, Trading Instructor

Instuctor's Response:

When the RSI is below 30 (oversold) and then closes above 30 it is a signal to go long the pair. Conversely, when the RSI is above 70 (overbought) and then closes below 70 that level that is a signal to sell the pair.  Keep in mind that as traders we use the indicator in conjunction with the chart..  We determine by looking at the chart in which direction we want to trade the pair...that is key.  After we make that determination, it is then  that we use the RSI to time our entry in that direction. 

Newer traders oftentimes make the mistake of thinking that as soon as the RSI enters overbought or oversold territory that the pair in question will almost immediately move in the opposite direction.  The reality is that once a pair enters those areas, the pair can become even more overbought or oversold.  So the answer is to wait for the RSI to move out of those overbought and oversold areas before a prudent trade can be executed.

Take a look at chart below for an example on this...

chart 2 18 10

Also, remember that when implementing these RSI signals the signals that indicate taking a trade in the direction of the Daily trend will be the higher probability trades.


DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.