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Quick point, it can be done with any gun, but you use the Rocket Launcher for a reason...
Unscoped, the Rokcet Launcher has the longest range whilst the reticle is red (if that makes sense. This obviously makes the trick better.
You basically push Y and R independently, at the correct speed, and eventually, you will go flying at the person. You sometimes have time to make sure you end up with the Sword out, so you can give 'em a prod as you fly.
It's very useful for reaching very high places. Get your opponent standing on the edge of a building, look up at him and do the trick, and you'll go flying over his head.
It does work, but there is no point to it whatsoever.