Trading the Forex with RSI

The video provides an overview of what the RSI is and how to trade it.  The RSI, or relative strength indicator, is a lagging momentum indicator and compares the magnitude of the recent gains versus the recent losses.  It attempts to indicate whether a security is overbought or oversold.  Typically, when the RSI is below 30, it is oversold while a move above 70 may indicate that it is overbought. 

The speaker believes that the most powerful application of the RSI is to look at divergences between RSI and price.  He walks through a few chart examples and illustrates how to apply this indicator