How To Read Rsi In Forex. The relative strength index (rsi) is most commonly used to indicate temporarily overbought or oversold conditions in a market. If rsi is reading below 30, traders will often.
If a trader buys gbp/usd for 1.6000 and then later on sells it. The ‘1’, four spaces after the 0, is what is referred to as a pip. If the rsi has a reading below 30, the market is considered oversold.