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RSI is an indicator that compares upward and downward movements in closing price over a period of time of your choice. As with any indicator traders use RSI in many ways. One of the most popular ways is to go long when RSI moves below a value of 40 and then rises above it.
In a downtrend, a short signal is when RSI moves above 60 and then moves back below it.
Usually, RSI is considered overbought when above 70 and oversold when below 30.
I hope this quick post help you understand what RSI is and you can use it on your next trade... Thanks for reading and...Happy Trading!!!