RSI Swing Failure Bitcoin Trade Setup
RSI bitcoin trading swing failure can be a very accurate technique for trading short term bitcoin trading moves. It can also be used for trading long term bitcoin trends but it is best suited for short term bitcoin trading especially for those bitcoin traders that trade reversals.
The RSI swing failure swing cryptocurrency setup is a confirmation of a pending market reversal. This bitcoin trading swing failure setups a leading breakout signal, it warns that a support or resistance level in the btcusd market is going to be penetrated. This setup should occur at values above 70 for an upward bitcoin trend and values below 30 in a downward trend.
Swing Failure In an Upward Bitcoin Trend
If the bitcoin RSI Bitcoin Indicator hits 79 then pulls back to 72, then rises to 76 and finally drops to below 72 this is considered a failure swing bitcoin RSI setup. Since the 72 level is an RSI support level and it has been penetrated it means that bitcoin price will & follow & it will penetrate its support level.
In the example illustrated below, the bitcoin RSI indicator hits 73 then pulls back to 56, this is a support level. The indicator then rises to 68 and then drops to below 56, thus breaking the support level. The bitcoin price then follows afterwards breaking it support level. The bitcoin RSI swing failure is a leading signal and it is confirmed when bitcoin price also breaks it support level. Some traders open trades once the swing failure is complete while other bitcoin traders wait for bitcoin price confirmation, either way it is for a trader to decide what work best for them.
RSI Swing Failure Setup in an Upward Bitcoin Trend
Swing Failure In a Downwards Bitcoin Trend
If the bitcoin RSI Bitcoin 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 bitcoin price will & follow & it will penetrate its resistance level.
RSI Swing Failure Setup in a Downward Bitcoin Trend
