When learning how to trade with the RSI first you will need to know exactly what it does. The RSI is an indicator that shows the current speed and change of the price movements. Most importantly it will tel you when a stock is oversold or overbought. The RSI has a level of measurement that goes from 10 to 90. When the rsi on a stock is above 70 that indicates that the stock is currently overbought. When a stock is overbought it would be wise if you are in a bull position to possibly expect that the chart may need to cool and the price may go back down to reset. When the rsi is below 30 this means that the stock is currently oversold. This may indicate that the stock will have a tendency to go back up.