MACD + RSI TS

The MACD + RSI TS indicator provides a systematic approach to trend and momentum trading by combining Exponential Moving Average convergence/divergence with Relative Strength Index exhaustion levels. This tool is designed to identify potential entry points when price momentum aligns with oversold or overbought conditions, specifically optimized for commodities and forex markets.

Usage

The indicator generates signals based on the confluence of two primary technical components:

• Long Entry: Occurs when the MACD line is increasing (positive momentum) while the RSI is near or below the oversold threshold.
• Short Entry: Occurs when the MACD line is decreasing (negative momentum) while the RSI is near or above the overbought threshold.

Visual markers are plotted on the chart to signify these conditions: green upward triangles for long opportunities and red downward triangles for short opportunities. Users can integrate these signals with fractal-based stop losses or other risk management techniques to refine their positioning.

Details

The strategy calculates the MACD line as the difference between a fast and a slow Exponential Moving Average (EMA). Unlike traditional MACD strategies that wait for a signal line crossover, this script looks for the slope of the MACD line to identify early shifts in momentum. Simultaneously, the RSI measures price velocity to ensure the market is at a relatively extreme level (threshold-adjusted) before a signal is confirmed.

Settings

• Source: Determines the price data used for all calculations (default is Close).
• MACD Fast Length: The period for the shorter Exponential Moving Average.
• MACD Slow Length: The period for the longer Exponential Moving Average.
• RSI Length: The lookback period used to calculate the Relative Strength Index.
• RSI Threshold: A percentage-based adjustment (0 to 0.5) that expands or contracts the standard RSI overbought (70) and oversold (30) levels to allow for more flexible entry filtering.

FAQ

How do I use the RSI Threshold setting?

The RSI Threshold adjusts the standard 70/30 levels. A higher threshold makes the entry conditions more inclusive by allowing signals even if the RSI hasn't reached the exact 70 or 30 mark, while a lower threshold requires more extreme price exhaustion.

What markets is this indicator best suited for?

While it can be applied to any asset, the logic is particularly effective on high-liquidity markets such as commodities and forex where momentum swings are common.

How can I access MACD + RSI TS?

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