Multi Timeframe Relative Strength Index

The Multi Timeframe Relative Strength Index indicator provides a holistic view of market sentiment by aggregating RSI values across six different user-defined timeframes to identify momentum and potential trend reversals.

Usage

The indicator can be used to identify market conditions based on the confluence of RSI across multiple timeframes. Traders can monitor the aggregated MTF RSI value and the color-coded background for directional bias:

• Long Bias: Indicated when the aggregated value is above the Upper Neutral Threshold (displayed with a rocket icon 🚀 in the table).
• Short Bias: Indicated when the aggregated value is below the Lower Neutral Threshold (displayed with a snowflake icon ❄️ in the table).
• Neutral Bias: Indicated when the value resides between the upper and lower thresholds (displayed with a star icon 💫).

Traders can also utilize the Overbought and Oversold levels to anticipate potential exhaustion points where a reversal may occur.

Details

This tool calculates an independent RSI for six different timeframes. For each timeframe, it determines if the RSI is currently bullish (above 60), bearish (below 40), or neutral. These results are then averaged to create a single oscillator value ranging from -1 to 1.

To improve clarity, the script includes an optional smoothing feature. By applying a Moving Average (such as HMA, EMA, or SMA) to the aggregated multi-timeframe data, the indicator reduces noise and provides a clearer trend trajectory.

Settings

Table

• Table Position: Determines where the summary table is displayed on the chart.
• Table size: Adjusts the text size within the summary table.

Plots

• Show Background Color: Toggles the color-coded background based on market bias.
• Plot Histogram?: Changes the visual style of the main MTF RSI plot from a line to a histogram.

RSI

• Length: The lookback period used for the underlying RSI calculation.
• Overbought Level: The upper threshold for identifying overextended market conditions.
• Oversold Level: The lower threshold for identifying overextended market conditions.
• Upper Neutral Threshold: The level above which the aggregated trend is considered "Long".
• Lower Neutral Threshold: The level below which the aggregated trend is considered "Short".

MTF RSI

• MA Type: Selects the type of moving average used for smoothing (SMA, EMA, SMMA, WMA, VWMA, or HMA).
• Smoothing for MTF rsi: The period for the smoothing moving average.
• Use MA Smoothing for MTF rsi?: Toggles the smoothing functionality.

MTF

• Timeframe 1 - 6: Individual settings to define the six different timeframes used in the aggregation.

FAQ

How do I interpret the table icons?

The rocket icon indicates a strong bullish confluence across timeframes, the snowflake indicates a bearish confluence, and the star indicates a neutral or ranging market.

Can I change the RSI sensitivity?

Yes, you can adjust the "Length" parameter in the RSI settings to make the indicator more or less sensitive to recent price changes.

How do I access Multi Timeframe Relative Strength Index?

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