How to use RSI indicator

Apply RSI 5 and RSI 14

Apply a short 5 period RSI (RSI 5) over the longer (default) 14 period RSI (RSI 14) and watch for crossovers. 

With the RSI 14, there are times when the market does not reach the oversold or overbought levels before a shifting direction occurs. 

A shorter period RSI is more reactive to recent price changes, so it can show early signs of reversals. 

Buy Signal

When the RSI 5 crosses above the RSI 14, it means that recent prices are getting higher.

A buy signal is then generated, and a 5 vs. 14 cross should happen when the 5 period (blue) is oversold (below 30). 

Sell Signal

When the RSI 5 crosses below and becomes lower than the RSI 14, it means that recent prices are declining. 

This is a sell signal. A 5 vs. 14 cross should occur when the 5 period (blue) is overbought (above 80). 

Works well with Pivot Points

Experienced traders may find that their trading performance greatly benefits from combining a RSI trading strategy with Pivot Points.

Source: https://admiralmarkets.com/education/articles/forex-indicators/relative-strength-index-how-to-trade-with-an-rsi-indicator

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