how to read rsi stands for relative strength index and it uses a simple oscillator to calculate the price movement on a particular currency pair. The higher the level of the index, the more overbought the currency pair is and the lower the level, the more oversold. Hence, RSI is often used by traders as a confirmation indicator and also along with other technical indicators to provide buy and sell signals. To read the RSI, traders should know how to calculate the RSI value, and use this indicator to trade.