MTF Diagonally Layered RSI - 1 minute Bitcoin Bot

The MTF Diagonally Layered RSI - 1 minute Bitcoin Bot tool provides a multi-timeframe approach to identifying trade entries by requiring momentum alignment across two higher timeframes and the current chart interval.

Usage

The indicator is designed to enter trades when higher timeframes are in oversold territory, providing a higher probability foundation for trend reversals. The "diagonal layering" concept addresses the common issue where current timeframe overbought levels are never reached during strong downtrends. To mitigate this, the strategy can enter based on slower timeframe oversold conditions and exit when the faster (current) timeframe reaches overbought levels.

Examples of usage:

• Long Entries: Triggered when the current RSI crosses above the oversold level while both higher timeframe RSIs are already below that level, or when a higher timeframe RSI recovers from oversold while the others remain above.
• Trend Filtering: Users can enable the EMA Filter to ensure trades are only taken in the direction of the long-term trend.
• Risk Management: The strategy includes an optional percentage-based stop loss to protect capital during volatile price swings.

Details

The script offers two calculation methods for the Multi-Timeframe (MTF) RSI:

1. Security Function: Uses standard TradingView request.security() calls.
2. Manual Calculation: A non-repainting method that approximates higher timeframe RSI values using the current interval's data and mathematical multipliers. This is particularly useful for traders who want to avoid the potential visual discrepancies associated with real-time security calls.

The "diagonal" logic ensures that the strategy remains active even when the primary timeframe is unable to reach traditional overbought/oversold extremes due to dominant trend pressure.

Settings

Config

• RSI Length: The lookback period used for the RSI calculation across all timeframes.
• HT 1: The first higher timeframe interval (e.g., 3-minute).
• HT 2: The second higher timeframe interval (e.g., 5-minute).
• Overbought Level: The threshold used to signal potential exits or short entries.
• Oversold Level: The threshold used to signal potential long entries.
• Calc Type: Choose between "Security Function" (standard) or "Manual Calculation" (non-repainting approximation).

Risk Management

• Use EMA Filter: Toggles a trend filter based on an Exponential Moving Average.
• EMA Length: Sets the period for the trend filter EMA (default 200).
• Use % Stop Loss: Enables an automated exit based on a fixed percentage drop from the entry price.
• Stop Loss (%): Defines the percentage distance for the stop loss.
• Allow Shorts?: Determines if the strategy operates as "Long-only" or "Long and Short".

FAQ

How do I access MTF Diagonally Layered RSI - 1 minute Bitcoin Bot?

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

Does this indicator repaint?

When the "Manual Calculation" mode is selected, the indicator uses logic specifically designed to be non-repainting by calculating higher timeframe approximations using closed bars from the current timeframe.

Can I use this on assets other than Bitcoin?

While optimized for the 1-minute Bitcoin chart, the multi-timeframe RSI logic is universal and can be applied to other cryptocurrencies, forex, or equities by adjusting the timeframe and RSI settings.