How to Read Simple RSI Indicator

Relative Strength Index was first introduced by J. Welles Wilder in 1978 in his book New Concepts in Technical Trading Systems. The value of the RSI in the range 0-100 (therefore classed oscillator indicator. Oscillate = range). RSI itself is a momentum indicator that compares the prices between the current value of the losses. RSI calculation formula written as follows:

RS = Relative Strength, is the ratio between the smoothed two XMA
AG = Average price gains in the period specified. Obtained from the total gain divided by the used period.
AL = Average price loss for the specified period. Retrieved from total loss divided by the used period

how to read a simple RSI indicator on his 50-point, if the RSI moving from point 50 to point 75, it can be indicated prices are rising and will usually reverse after RSI close or reach point 75, this is often called the overbought condition, and conversely when the RSI leaving point 50 and lead prices down to point 25 and will usually back up after close to point 25 is often referred to in the oversold condition.
RSI is used to determine overbought / oversold, and RSI can also help us to know: Divergence and the momentum of price movements.