To identify potential trend reversals in forex trading, use the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD). The RSI signals overbought conditions above 70 and oversold conditions below 30, hinting at possible reversals. The MACD indicates reversals when its line crosses the signal line. Both tools help spot momentum shifts, providing early warnings of trend changes when used together.
Updated over 5 months ago