RSI MTF Ob+Os

The RSI MTF Ob+Os indicator provides a multi-timeframe approach to identifying overbought and oversold conditions by aggregating Relative Strength Index data from up to five different timeframes simultaneously.

Usage

The indicator is primarily used to identify confluence across multiple timeframes to spot high-probability reversal points. When the RSI values of all selected timeframes align beyond the user-defined thresholds, the script highlights the chart background.

• Bullish Scenario: When all active timeframes reach the "Oversold" level, the background turns green (default), suggesting a potential long entry or a reversal point.
• Bearish Scenario: When all active timeframes reach the "Overbought" level, the background turns red (default), suggesting a potential short entry or a reversal point.

Traders can toggle individual timeframes on or off to customize the sensitivity of the confluence detection.

Details

The script utilizes the request.security function to fetch RSI data from external timeframes. It calculates a base RSI using the user's preferred length and source, then maps this calculation across the five timeframe slots. The logic for the background highlight requires a logical "AND" operation—meaning every enabled timeframe must satisfy the overbought or oversold condition for the signal to trigger. This multi-layered filtering helps reduce noise and focuses on significant trend exhaustion points.

Settings

RSI Settings

• Source: Determines the price data used for the RSI calculation (e.g., Close, Open, HL2).
• Length: The period used for the RSI calculation (default is 14).
• Overbought: The upper threshold level (typically 65-70).
• Oversold: The lower threshold level (typically 30-35).

Select Timeframe

• Timeframe 1-5: Dropdown menus to select specific timeframes (e.g., 15m, 1h, 4h).
• Enable Toggle (Boolean): A checkbox next to each timeframe to include or exclude it from the confluence logic and visual plotting.

FAQ

How do I interpret the background colors?

A green background indicates that all enabled timeframes have reached an oversold state, while a red background indicates all enabled timeframes are overbought.

Can I use this for scalping and swing trading?

Yes, the indicator is highly versatile. By adjusting the five timeframe inputs, you can tailor the tool for short-term scalping (e.g., 1m to 15m) or long-term swing trading (e.g., 1h to Daily).

How can I access RSI MTF Ob+Os?

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