Abstract-The received signal strength (RSS) of wireless signals conveys important information that has been widely used in wireless communications, localisation and tracking. Traditional RSS-based research and applications model the RSS signal using a deterministic component plus a white noise term. This paper investigates the assumption of white noise to have a further understanding of the RSS signal and proposes a methodology based on the Allan Variance (AVAR) to characterise it. Using AVAR, we model the RSS unknown perturbations as correlated random terms. These terms can account for both coloured noise or other effects such as shadowing or smallscale fading. Our results confirm that AVAR can be used to obtain a flexible model of the RSS perturbations, as expressed by coloured noise components . The study is complemented by introducing two straightforward applications of the proposed methodology: 1) The modelling and simulation of RSS noise using Wiener processes, and 2) RSS localisation using the extended Kalman filter.