MetenaRSI: definition, calculation and bitcoin example
A momentum indicator between 0 and 100. Above 70 it is often called overbought; below 30, oversold. It is a reference point, never a buy signal on its own.
Definition
RSI compares the average gain with the average loss over a period, usually 14 days. The result is scaled between 0 and 100: the higher it is, the more recent gains have dominated.
The 70 and 30 thresholds are conventions. In a strong trend, RSI can stay above 70 for weeks while the price keeps rising. RSI describes the speed of the move; it does not say where the price is going.
How to read the chart
At the top, the bitcoin price. At the bottom, its 14-day RSI. The dark band covers the neutral zone, between 30 and 70.
Red marks show the days when RSI was above 70, green marks the days when it was below 30. Compare them with the price above: those days do not always line up with a turn.
Worked example
From 16 April 2025 to 7 October 2026, bitcoin’s 14-day RSI was above 70 on 34 days and below 30 on 22 days. Its high, 86, came on 21 August 2026; its low, 15, on 6 June 2026.
In Metena
You can use RSI in the rules of a Metena strategy, for example “add only if the 14-day RSI is below 40”. The backtest then measures what that condition actually changes compared with unfiltered purchases.
Notify me at launchRelated terms
- MACD
- An indicator that compares two exponential moving averages to spot a change in trend. A bullish crossover suggests strengthening momentum.
- Moving average (SMA, EMA)
- The average price over a given period: it smooths out noise and brings out the trend. The EMA gives more weight to recent prices.
- Bollinger Bands
- An envelope drawn around a moving average, two standard deviations wide. It shows whether the price is unusually high or low given its recent volatility.
- Volatility
- The size of an asset’s price swings. High volatility means large moves, up as well as down.
Put these ideas into practice.
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Notify me at launchEducational content. It is not investment advice. Crypto-assets carry a high risk that can go as far as the total loss of capital.