RSI Shaded - MTF

The RSI Shaded - MTF indicator provides a multi-timeframe Relative Strength Index (RSI) with enhanced visual shading and smoothing options to identify overbought and oversold market conditions.

Usage

This tool allows traders to monitor RSI momentum across different timeframes without switching charts, aiding in the identification of broader trend exhaustion or reversals. The shading between the RSI line and extreme levels (overbought/oversold) highlights areas of interest, while the optional smoothing and EMA plots help filter out market noise.

Traders can utilize this script to:

• Identify overbought (>85) and oversold (<15) zones across higher timeframes.
• Use the Cumulative RSI feature (Larry Connors style) to smooth out volatile price action.
• Observe the relationship between the RSI and its EMA to gauge momentum shifts.
• Monitor price action directly via the Color Extreme Bars option, which highlights candles when the RSI enters extreme zones.

Details

The indicator is designed to be non-repainting. It utilizes a custom calculation logic to handle different intervals, ensuring that the RSI data from the selected higher timeframe aligns correctly with the current chart's bars.

Key technical features include:

• Cumulative Smoothing: Uses an SMA-based approach to average the RSI over a specified length, useful for short-term mean reversion strategies.
• Histogram Mode: Offers an alternative visualization where the RSI is plotted as a histogram for better clarity on momentum changes.
• EMA Integration: Plots an Exponential Moving Average of the RSI itself, providing a dynamic signal line.

Settings

Main Settings

• Interval: Determines the timeframe for the RSI calculation (e.g., H01, H04, Day).
• Use Chart Interval: When enabled, the indicator uses the current chart's timeframe instead of the manual selection.
• Length: The lookback period for the standard RSI calculation.
• Cumulative Length: The period used for the Larry Connors-style smoothing of the RSI.
• EMA of RSI Length: The period for the exponential moving average applied to the RSI.

Visual Settings

• Over Bought: The threshold for the upper extreme level (default 85).
• Over Sold: The threshold for the lower extreme level (default 15).
• Show Cumulative RSI?: Toggles the smoothed RSI calculation.
• Histogram Style?: Changes the RSI plot from a line to a histogram.
• Color Extreme Bars?: Enables bar coloring when the RSI is in overbought or oversold territory.
• Show Divergences?: Toggle for divergence identification (if supported by logic).

FAQ

How do I change the timeframe of the RSI?

You can change the timeframe by adjusting the "Interval" dropdown in the settings or by checking "Use Chart Interval" to sync it with your current view.

What is the "Cumulative RSI" used for?

The Cumulative RSI applies a smoothing period to the raw RSI values, often used in strategies like Connors RSI to identify high-probability mean reversion setups.

How can I access RSI Shaded - MTF?

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