How RocketDip's Composite Score Works

RocketDip boils four technical indicators down to a single number from 0 to 10. But how does that number actually get calculated? What goes into it, and why did we choose these specific indicators? This post breaks down the entire scoring system so you can understand exactly what you're looking at when you check your score.

The Philosophy Behind the Score

Before diving into the math, it helps to understand the thinking behind the score. RocketDip was built on a simple observation: the best times to buy Bitcoin are when most people are afraid to.

Every indicator in the composite score measures some aspect of market fear, momentum, or trend. When multiple indicators simultaneously show fear, oversold conditions, or recent price drops, the score goes up — signaling that conditions are historically favorable for buying. When indicators show greed, overbought conditions, or FOMO-driven surges, the score goes down.

The score is contrarian by design. It's high when the crowd is scared and low when the crowd is euphoric.

The Four Indicators

1. RSI (Relative Strength Index) — Up to 3 Points

RSI measures momentum on a 0-100 scale. Low RSI means Bitcoin is oversold (price has been falling). High RSI means it's overbought (price has been surging). RocketDip uses the standard 14-period RSI with Wilder's smoothing method.

Why 3 points: RSI is one of the most reliable momentum indicators. Bitcoin RSI below 30 has historically preceded significant recoveries. It deserves heavy weighting.

2. Fear & Greed Index — Up to 3 Points

The Fear & Greed Index aggregates market sentiment from multiple sources — social media, volatility, surveys, market volume, and Bitcoin dominance. It produces a 0-100 score where 0 is extreme fear and 100 is extreme greed.

Why 3 points: Warren Buffett's famous advice — "be greedy when others are fearful" — has proven remarkably applicable to Bitcoin. The Fear & Greed Index directly measures crowd fear, making it one of the strongest contrarian indicators available.

3. Moving Average Cross — Up to 2 Points

RocketDip compares the 50-day Simple Moving Average (SMA) to the 200-day SMA. When the 50-day is above the 200-day, it indicates bullish momentum (a "Golden Cross" pattern). When it's below, it indicates bearish momentum (a "Death Cross").

Why 2 points: The MA cross is binary — bullish or bearish. It doesn't have the granularity of RSI or Fear & Greed, but it's an important trend confirmation. A high score during a bearish MA cross comes with a natural cap, which prevents the algorithm from screaming "buy" during a sustained downtrend that might have further to fall.

4. 24-Hour Price Change — Up to 2 Points

This indicator looks at how much Bitcoin's price has moved in the last 24 hours. Big drops earn points (buying opportunity). Big surges earn zero (FOMO risk).

Why 2 points: Short-term price action matters for timing. A 5% drop on top of already-oversold RSI and extreme fear is the kind of convergence that creates rare buying opportunities. The 24H indicator captures this recency component that the other indicators miss.

Reading the Composite Score

What the Score is NOT

The RocketDip score is not a price prediction. It doesn't tell you where Bitcoin's price will be tomorrow, next week, or next year. What it does tell you is whether current conditions have historically been associated with favorable buying opportunities.

Think of it like a weather forecast. A forecast of 90% chance of rain doesn't guarantee it will rain — but you'd be smart to bring an umbrella. Similarly, a RocketDip score of 8 doesn't guarantee prices will go up — but historically, that's been a very favorable time to buy.

Transparency and Verification

Every data point in the RocketDip score comes from publicly verifiable sources. You can check our RSI on TradingView, our Fear & Greed reading on Alternative.me, and our price data on CoinGecko. We don't use proprietary black-box data — everything is open and verifiable.