Failure Swing

A term used in technical analysis. A top failure swing occurs when the market is in an uptrend and the Relative Strength Index (RSI) is over 70. The RSI falls and the next peak in the RSI fails to exceed the previous peak. Similarly, a bottom failure swing occurs if the market is in a downtrend and the RSI is below 30 and the next trough in the RSI is above the previous one.