RSI + MACD Multi-Timeframe Strategy

The RSI + MACD Multi-Timeframe Strategy indicator is a dual-momentum trading tool designed to align higher-timeframe trend exhaustion with lower-timeframe momentum shifts for high-probability entry and exit points.

Usage

The indicator can be used to identify long-only opportunities by filtering price action through two different time horizons. A long entry is triggered when the Daily RSI indicates an oversold condition while the 4-hour MACD produces a bullish crossover. Conversely, the strategy manages risk by closing positions when the Daily RSI reaches overbought levels and the 4-hour MACD crosses below its signal line.

Traders can use the "Plot Selector" to toggle between viewing the RSI or the MACD directly on the indicator pane, allowing for visual confirmation of which component is currently driving the strategy logic.

Details

This script utilizes a multi-timeframe (MTF) approach via the request.security() function to synchronize data across different intervals. By default, it looks at the 1D timeframe for the Relative Strength Index (RSI) to capture the broader market cycle and the 4H timeframe for the Moving Average Convergence Divergence (MACD) to pinpoint execution timing.

The implementation ensures that only closed candles from the higher timeframes are used to prevent repainting issues. This logic helps in reducing "noise" by ensuring that short-term momentum signals are only acted upon when the long-term trend context is favorable.

Settings

Plotting Options

• Plot Selector: Choose between displaying "RSI" or "MACD" on the chart pane for visualization.

Relative Strength Index

• RSI Timeframe: The higher timeframe used for RSI calculation (default: 1D).
• RSI Length: The lookback period for the RSI calculation.
• RSI Overbought Level: The threshold above which the asset is considered overbought for exit logic.
• RSI Oversold Level: The threshold below which the asset is considered oversold for entry logic.

Moving Average Convergence/Divergence

• MACD Timeframe: The lower timeframe used for MACD signals (default: 4H).
• MACD Fast Length: The short-term EMA period for the MACD line.
• MACD Slow Length: The long-term EMA period for the MACD line.
• MACD Signal Smoothing: The smoothing period for the MACD signal line.

FAQ

How do I access the RSI + MACD Multi-Timeframe Strategy?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Does this strategy include shorting logic?

Currently, the script is designed for long entries only, focusing on buying dips in oversold environments with momentum confirmation.

Can I use different timeframes for the calculations?

Yes, the timeframes for both RSI and MACD are fully adjustable in the settings menu, allowing you to adapt the strategy to different trading styles such as scalping or swing trading.