RSI Swing Failure Energies Trading Setup

RSI energies swing failure can be a very accurate method for trading short term energies moves. It can also be used for trading long term energies trends but it is best suited for short term energies especially for those energies traders that trade reversals.

The RSI swing failure swing energies setup is a confirmation of a pending energies market reversal. This energies swing failure setups a leading breakout signal, it warns that a support or resistance level in the energies market is going to be penetrated. This energies setup should occur at values above 70 for an upward energies trend and values below 30 in a downwards trend.

Swing Failure In an Upward Energies Trend

If the energies RSI Energies Technical Indicator hits 79 then pulls back to 72, then rises to 76 and finally drops to below 72 this is considered a failure swing energies RSI setup. Since the 72 level is an RSI support level and it has been penetrated it means that energies price will and follow and it will penetrate its support level.

In the energies example illustrated and explained below, the energies RSI indicator hits 73 then pulls back to 56, this is a support level. The energies indicator then rises to 68 and then drops to below 56, thus breaking the support level. The energies price then follows afterwards breaking it support level. The energies RSI swing failure is a leading energies signal and it is confirmed when price also breaks it support level. Some traders open trades once the swing failure is complete while other energies traders wait for energies price confirmation, either way it is for a trader to decide what work best for them.

Energies Trading RSI Swing Failure Setup in an Upward Energies Trend

Swing Failure In a Downward Energies Trend

If the energies RSI Energies Technical Indicator hits 20 then pulls back to 28, then falls to 24 and finally penetrates above 28, this is considered a failure swing setup. Since the 28 level is an RSI resistance level and it has been penetrated it means that energies price will and follow and it will penetrate its resistance level.

Energies Trading RSI Swing Failure Setup in a Downward Energies Trend