MTF RSI same direction alert, incorporate level 50

Hello Friends,

most of us are trend-trader, because moves into trend-direction are stronger and lasting longer than counter-trend-moves.

But how do we get back into trend after a pullback and even better during a trend after one or two candles in the opposite direction?

Trend-trading needs momentum and one way to see momentum is RSI level 50 (there are some older youtube videos about pro traders who trade RSI MTF level 50 with great success because it simply works)

The indicator I have in my mind should have three timeframes working together, no RSI displaying on the chart, 3 types of alert, maybe an arrow while alert, but not a must.
More important is, that all 3 timeframes have to be above or below level 50 and pointing into the same direction of uptrend when above, downtrend when below and trigger an alert while all 3 tf candles are still open. (Maybe a "close of the smallest tf" option too).

The picture illustrates what I mean. Here the "close of the smallest tf" is shown by the blue vertical lines I drew in.

It is a M5 Chart with RSI 5 set to close ( rsi 5 gives early  signals and obos 85/15 incl. divergences good to spot for those who are wondering why rsi5)

Three RSI subwindows are M15, M30 and H1.

You can see less alerts in the ranging area, early signals when trend goes on and many signals during trend, to scale in.

Now you are asking: What if trend is over and alerts are still triggering? Just put a RSI on your chart to check obos zones and divergences or use your usual way to check when trend comes to an end.

Hope you like my idea and the potential for many traders.

Best Regards

P.S.: Of course could the indicator have the option to ignore level 50 and alerts trigger when ever 3 timeframes align.
        You know why, when you take a look at the left of the picture. There could have been a signal way before the first vertical line, but this is only an option. You have to filter out wrong signals as you can see far left too. There is no holy grail.

Free RSI arrows indicator:
 

Linkback: https://www.forex.zone/new-indicator-coding/25/mtf-rsi-same-direction-alert-incorporate-level-50/354/

Sounds very good!!!!! I like it!!!

Quote from: Drax on October 27, 2018, 01:12:38 PM

The picture illustrates what I mean. Here the "close of the smallest tf" is shown by the blue vertical lines I drew in.

In your image near the middle, there is a cluster of 3 lines together. Why? It looks as if the first line in that cluster should be enough.

Hello.

This is one of the beatiful advantages of this unique indicator. Every blue vertical line stands for a triggered alert,

of the RSI 5 M15 (smallest in this example) while M30 and H1 do point in the same direction too.

The lines marking the end of a M15 candle, where the core of the indicator works...mtf, all 3 rsi, same direction, above level 50. In this example M15, M30 and H1 Rsi illustrated in the 3 subwindows.

"...should be enough".... ??

Advantages: It shows, there is still strong momentum into trend-direction.
Cluster of alerts is brillant for scale in trades (additional trades into trend-direction).
And last but not least, in case you missed the first alert...get in at the second or third.



The indicator should have the option to select Timeframes, not only 3 rigid consecutive Timeframes.
An option for alert at current or closed candles would be nice too.

As you can see in the picture (multiple divergences are to see and/or a important support/resistance line or a trendline can be near (not to see in pic)...every trend finds an end and is no longer your (girl-)friend.

For that matter, an option to turn off the "level 50" premise can be good, but this is just a thinking.

Drax

Quote from: Drax on November 06, 2018, 01:45:06 PM

Advantages: It shows, there is still strong momentum into trend-direction.
Cluster of alerts is brillant for scale in trades (additional trades into trend-direction).
And last but not least, in case you missed the first alert...get in at the second or third.

Based on what you said, I could draw many more lines on your chart. I don't understand why you drew 3 lines in that spot, but missed drawing many more lines on the chart. So I (or any coder) will need to know how you define "still strong momentum".

....Well,

as I said one or two times...the lines are to illustrate.

And I was looking closly only to draw lines, where all 3 RSI of the Timeframes realy point up north at the end of the M15 (smallest) candle.

I did of course NOT draw a line where M30 and/or H1 did NOT point up north too. Just beeing above level 50 does NOT trigger an alert. That`s why the indi is called....."same direction" (literally)

So when the "old rsi level 50" strategy comes into play AND all 3 Timeframe RSI pointing north, THEN I am able to say

"still strong momentum" .......(into trend-direction, trend not over yet)

Quote from: Drax on November 06, 2018, 02:12:56 PM

as I said one or two times...the lines are to illustrate.

Yes, but that doesn't mean an illustration cannot show all signals. Someone could understand what you said to mean that the lines were drawn instead of arrows just to illustrate. Unless you want an indicator that draws illustrations, my question was very valid. Now I understand that your image did not show all the possible lines. Now on to the next question.

Quote from: Drax on November 06, 2018, 02:12:56 PM

Just beeing above level 50 does NOT trigger an alert.

In the image where the cluster of 3 lines are that I mentioned, doesn't the 2nd and 3rd lines in that cluster just contradict what you are saying?

OK,

I give up. Explained more than enough to make a non trader, a non coder understand what the idea is behind a convergence indicator, including a carefully drawn picture, explanations in detail etc, etc.

It looks like you are not willing to understand, no other way possible.

But there you go, you can keep the idea.

Make a nice profitable indicator out of it and sell it as often as you can.

You are welcome.

it looks really good ... maybe I will want to try it later

I once used a positive indicator but instead it became confusing to determine the entry point because not all indicators showed the same signal

I thought it would have been better if it could give like a warning sound when all RSI are in the same condition so this is a sign of the time to enter the market with a very good signal

it is a very good idea so that it will produce the same signal