Drawing the classic chart pattern was the first thing that I learned about technical analysis twenty years ago. Since then I trained my eyes and mind to capture them until it become one of my habits as a trader.

Drawing chart patterns on momentum indicators like RSI was even better. That is because momentum indicators own some tendency to lead price candles on the chart.

So, when I draw a chart pattern on the chart I take a look at an indicator like RSI Candles to see if it confirms my point of view. And if it does, I might get serious about trading this price pattern, even before prices breakout its boundaries to the outside.

In the comment section, I will try to give enough examples of how to use RSI Candles with classic chart patterns. It will be exciting for me to listen to your opinions too.

Enjoy the game
Muhammad Al Bermaui, CMT

USDCAD was one of the strongest currency pairs in the last few weeks. After a strong breakaway gap to the upside, it moved one thousand pips from around the 1.35 to 1.45. But as you know that no trend lasts forever.

Here are the reasons that makes me think why the USDCAD might move to the downside:

• Two lower highs on price candles.
• A clear Head and Shoulders pattern on the RSI Candles.
• The right shoulder is above overbought level while the left shoulder is clearly under the overbought level. This show divergence.
• Head and shoulders neckline already broken to the downside.

If it happened then the USDCAD pair might cover the old gap around  1.35

Enjoy the game
Muhammad Al Bermaui, CMT

Hello Forex traders,

The NZDJPY currency pair shows some potential to the upside. First, it made two higher lows and this might show the beginning of a new uptrend. Second, its RSI Candles indicator shows an inverted head and shoulders pattern. The left shoulder of the pattern is under the oversold level, while the right shoulder is above it. Also, the neckline is already penetrated to the upside.

If I took this trade then, I might fight with the new trend until the RSI Candles indicator goes above the overbought level.

Enjoy the game
Muhammad Al Bermaui, CMT

The USDCAD hit the target at 1.35.

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Hello Forex traders,
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The GBPAUD show a clear divergence between its price candles and its RSI Candles.
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While the GBPAUD draws a Descending Channel on its price line, the RSI Candles indicator draws an Ascending Channel, which shows weakness in the currency pair's downtrend momentum.

If the GBPAUD breaks the upper band of its channel then it might target  1.8500

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Hello RSI Candles Traders 😎,
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Here is an explanation for why I think that EURUSD begins to find some weakness after its Jun - July 2020 sharp bullish trend.
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❶ First of all, there is a potential Head & Shoulder pattern that appears on the RSI Candles. This indicates divergence and weakness in current bullish momentum.

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❷ Second, there is a strong resistance around 1.1800
❸ At last, the EURUSD is outside its 100 weekly bars standard deviation channel and this indicates extreme overbought conditions.

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Conclusion. I think that EURUSD might revert back to around 1.1500 again but there are not enough clues about this yet.

Enjoy the game

Muhammad Al Bermaui, CMT

Hello RSI Candles Traders 😎,

The Dow Jones chart shows several negative divergences with the RSI Candles on the weekly graph.
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Hi, Forex traders.

The currency pair GBPAUD might find some kind of support around 1.75 because of those reasons:
1- The RSI Candles is oversold.
2- It enters inside a Zig Zone Support.
3- Standard deviation channel shows extreme oversold.
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If it retraced then, it might target the 1.80
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You can find the RSI Candles here:
https://www.mql5.com/en/market/product/48095
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Enjoy the game
Muhammad Al Bermaui, CMT

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Target is done, congratulations 😎

Dow 30000

No doubt that touching the 30,000 level was a dream for all the Dow Jones followers. I saw people on social media wearing caps with the words "Dow 30,000" on it!

When this dream came to be true everyone was happy, but the most important question is this dream healthy for the market future?

From a technical analysis point of view, I found to reasons that lead me to think that the market momentum is weak:
1- The Dow Jones moves inside a clear and wide Broadening Triangle on the weekly chart.
2- The RSI Candles show several divergences that happen in between descending channel boundaries.

As a result of this I can say that a market that is built on emotions of greed and fear might not be a healthy market. We might see a drop to the downside to the target of 26,000 followed with another drop to the target of 19,000.

Enjoy the game
Muhammad Al Bermaui, CMT

this is some good examples let me practice further and get back to you  

👍 Today gold is shown as a very good example of applying the natural law of motion on the 15 min chart.

✅ I drew the ABC Pitchfork which connects three overbought/oversold levels on the RSI Candles indicator.

✅ The center-line of the pitchfork worked as a price target at D.

✅ The distance XY was used to insert a time cycle horizontal lines.

✅The price target at D synchronized perfectly with the cycle horizontal line YZ, which makes it a perfect example of price and time targets.
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🎮 Enjoy the game.

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Hello, Baboloki.

• ✅ The "RSI Candles" is not a trend indicator. It is an oscillator that shows overbought and oversold areas. So, to will not alert for changes in the trend direction but for the appearances of OB & OS areas on the chart.

• ✅ When the RSI Candles tells you that there is a OB area on the chart then you should SELL.

• ✅ When the RSI Candles tells you that there is a OS area on the chart then you should BUY.

• ✅ I suggest to use the "Bermaui Manual EA" with the RSI Candles. Here is the link to it>> (CLICK HERE)
  

👉 On the next chart you can see two OB signals that shows good profits on the Dow Jones - 15 min chart.

🎥 I made it as a video

✔️ Bitcoin is building a triangle inside another triangle on its' RSI Candles & which is a sign of low volatility before a huge move.

🔫 So, get ready.

👉 There is a 93.75% probability that the Dow Jones Industrial will break this channel to the downside.
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👉 Bermaui RSI Candles are found here:
https://www.mql5.com/en/market/product/48095

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