Indicator Overview

The Relative Volatility Index (RVI) is a dynamic volatility gauge that measures Bitcoin’s price fluctuations by comparing positive and negative standard deviations of price changes over a 10-day period. Enhanced with an optional SMA and Bollinger Bands, it highlights momentum shifts and volatility extremes.

How To Use

The RVI oscillates between 20 (lower band) and 80 (upper band), with values above 80 signaling overbought conditions, suggesting potential pullbacks and opportunities to lock in gains. Values below 20 indicate oversold conditions, prime for initiating long positions. The middle band at 50 marks neutral momentum. The purple RVI line, paired with a yellow SMA and green Bollinger Bands, visualizes volatility trends, with shaded fills enhancing clarity. Traders can buy on dips below 20 or sell above 80, while investors may scale into positions during low volatility and trim during spikes, aligning with Bitcoin’s erratic cycles.