Indicator Overview

The Velocity RSI is an advanced momentum oscillator that refines the traditional Relative Strength Index (RSI) by incorporating price velocity, calculated using a lookback and a running moving average (RMA) smoothing. It measures the speed and direction of price changes relative to recent highs and lows, scaled to a 0–100 range.

Dual-Ticker Comparison Logic

The ‘Crypto’ fields allow the indicator to operate in both absolute price and relative performance modes, making it suitable for outright positioning or pair-based allocation decisions.

• Single Crypto Analysis: If Crypto 2 is left blank, the indicator measures Crypto 1 against US Dollars. This mode is designed to identify statistically stretched rallies, deep mean-reversion zones, and long-term accumulation conditions where price trades multiple standard deviations below its historical average.

• Relative Strength and Ratios: When both fields are populated, the indicator automatically constructs a ratio of Crypto 1 divided by Crypto 2, such as ETH/BTC or SUI/SOL. The metric is then calculated on the ratio itself, isolating relative performance and stripping out broad market beta. This enables precise identification of overperformance, underperformance, and regime shifts between assets.

How To Use

The Velocity RSI oscillates around a 50 midline, with values above 80 signaling overbought conditions, often preceding price pullbacks, ideal for profit-taking or shorting. Values below 20 indicate oversold conditions, typically aligning with buying opportunities during dips.

Historically, peaks mark speculative tops, while troughs signal undervaluation. Traders can buy on dips below 20 and sell on spikes above 80. Investors may accumulate during oversold periods and reduce exposure in overbought zones, leveraging the indicator’s sensitivity to cyclical momentum for precise timing.