Indicator Overview

The MSTR Velocity RSI is a high-sensitivity momentum oscillator custom-tuned for Strategy’s extreme price behaviour. It enhances the classic RSI by incorporating price velocity, the directional speed of recent highs and lows, and applies RMA smoothing to produce a responsive 0–100 signal that captures MSTR’s explosive parabolic moves and equally violent reversals with exceptional clarity.

How To Use

Readings consistently above 80 (red zone + red fill) indicate severe overbought conditions and parabolic premium expansion, historically marking cycle tops, peak euphoria after major Bitcoin purchase announcements, or the final stages of debt-fuelled rallies — prime zones for profit-taking, hedging, or short exposure. Values below 20 (green zone + green fill) reveal extreme oversold states and capitulation, typically occurring during forced selling, rising yields, dilution panic, or sharp premium compression, creating some of the strongest historical entry windows for discounted exposure to Strategy’s Bitcoin treasury.

The 50 midline acts as the primary trend filter: sustained trading above confirms bullish leadership and justifies holding or adding, while breaks below warn of momentum loss. Divergences are especially powerful, price making new highs on declining Velocity RSI signals distribution and impending corrections, while price weakness with rising Velocity RSI indicates accumulation and high-probability rebounds. Traders use spikes above 80 for exits, plunges below 20 for aggressive entries, and the oscillator’s rapid responsiveness to navigate MSTR’s uniquely violent, news-driven cycles with precision and confidence.