Multitimeframe Analysis Pine Script

Here is a Pine Script code that implements a multi-timeframe trend reversal indicator using RSI and MACD for TradingView: ```pinescript //@version=5 indicator("Multi-Timeframe Trend Reversal", overlay=true, shorttitle="MTF Reversal", max_lines_count=500, max_labels_count=500) // Input parameters // RSI settings rsiLength = input.int(14, title="RSI Length") rsiOverbought = input.int(70, title="RSI Overbought Level") rsiOversold = input.int(30, title="RSI Oversold Level") // MACD settings macdFastLength = input.int(12, title="MACD Fast Length") macdSlowLength = input.int(26, title="MACD Slow Length") macdSignalSmoothing = input.int(9, title="MACD Signal Smoothing") // Timeframes tf1 = input.timeframe("1H", title="Lower Timeframe") tf2 = input.timeframe("4H", title="Higher Timeframe") // Backtesting range backtestPeriod = input.time(timestamp("2023-01-01 00:00"), title="Backtest Start Date", type=input.time) // Calculate RSI for both timeframes rsi1 = ta.rsi(request.security(syminfo.tickerid, tf1, close), rsiLength) rsi2 = ta.rsi(request.security(syminfo.tickerid, tf2, close), rsiLength) // Calculate MACD for both timeframes [macdLine1, signalLine1, _] = ta.macd(request.security(syminfo.tickerid, tf1, close), macdFastLength, macdSlowLength, macdSignalSmoothing) [macdLine2, signalLine2, _] = ta.macd(request.security(syminfo.tickerid, tf2, close), macdFastLength, macdSlowLength, macdSignalSmoothing) // Conditions for buy/sell signals buyCondition = rsi1 < rsiOversold and rsi2 < rsiOversold and macdLine1 > signalLine1 and macdLine2 > signalLine2 sellCondition = rsi1 > rsiOverbought and rsi2 > rsiOverbought and macdLine1 < signalLine1 and macdLine2 < signalLine2 // Plotting signals plotshape(series=buyCondition, title="Buy Signal", location=location.belowbar, color=color.green, style=shape.labelup, text="BUY", offset=-1) plotshape(series=sellCondition, title="Sell Signal", location=location.abovebar, color=color.red, style=shape.labeldown, text="SELL", offset=-1) // Background color for conditions bgcolor(buyCondition ? color.new(color.green, 85) : na, title="Buy Background", editable=true) bgcolor(sellCondition ? color.new(color.red, 85) : na, title="Sell Background", editable=true) // Alerts alertcondition(buyCondition, title="Buy Alert", message="Buy signal on Multi-Timeframe Trend Reversal") alertcondition(sellCondition, title="Sell Alert", message="Sell signal on Multi-Timeframe Trend Reversal") // Overlay RSI and MACD for visualization rsiPlot1 = plot(rsi1, title="RSI 1H", color=color.blue, linewidth=1) rsiPlot2 = plot(rsi2, title="RSI 4H", color=color.orange, linewidth=1) hline(rsiOverbought, "Overbought", color=color.red, linestyle=hline.style_dotted) hline(rsiOversold, "Oversold", color=color.green, linestyle=hline.style_dotted) macdPlot1 = plot(macdLine1, title="MACD Line 1H", color=color.blue, linewidth=2) signalPlot1 = plot(signalLine1, title="Signal Line 1H", color=color.orange, linewidth=1) macdPlot2 = plot(macdLine2, title="MACD Line 4H", color=color.red, linewidth=2) signalPlot2 = plot(signalLine2, title="Signal Line 4H", color=color.green, linewidth=1) fill(macdPlot1, signalPlot1, color=color.new(color.blue, 90), title="MACD Fill 1H") fill(macdPlot2, signalPlot2, color=color.new(color.red, 90), title="MACD Fill 4H") // Backtesting logic var float account = na if (time >= backtestPeriod) if buyCondition account := na(account) ? 1 : account * (1 + close[1] / close - 1) if sellCondition account := na(account) ? 1 : account * (1 - close[1] / close - 1) // Plot backtesting result plot(account, title="Backtest Account Growth", color=color.yellow, linewidth=2) // Add comments/documentation /* Multi-Timeframe Trend Reversal Indicator ---------------------------------------- This script performs multi-timeframe analysis using RSI and MACD. The script checks for overbought/oversold conditions on RSI and convergence/divergence on MACD across two timeframes (1H and 4H by default). Buy/Sell signals are generated based on these conditions being met on both timeframes simultaneously. Customization: - You can adjust the RSI, MACD, and timeframes used in the analysis via input parameters. - The script provides alerts when buy/sell conditions are met. - Visual signals and background colors are plotted on the main chart. - The script includes a simple backtesting mechanism to review performance over the last year. */ ``` ### Explanation of the Code 1. **RSI and MACD Calculations:** - The script calculates RSI and MACD for both the 1-hour (`tf1`) and 4-hour (`tf2`) timeframes. - RSI levels are compared against user-defined overbought/oversold levels. - MACD convergence/divergence is checked by comparing the MACD line to the signal line. 2. **Buy/Sell Conditions:** - A buy signal is generated when both timeframes' RSI is below the oversold level, and MACD lines indicate a bullish crossover. - A sell signal is generated when both timeframes' RSI is above the overbought level, and MACD lines indicate a bearish crossover. 3. **Visualization:** - Signals are visually represented on the chart with green (buy) and red (sell) labels. - Background colors change based on the conditions to provide a visual cue. - The RSI and MACD values for both timeframes are plotted for reference. 4. **Alerts:** - Alerts are set up for both buy and sell conditions so that users can be notified of potential trend reversals. 5. **Backtesting:** - The script includes a simple backtesting mechanism that calculates hypothetical account growth based on past signals over the past year. 6. **Customization:** - All key parameters, including RSI and MACD settings and timeframes, are adjustable. 7. **Documentation:** - Comprehensive comments are included to explain the logic and usage of the script. ### Usage: - Apply this script to your TradingView chart. - Adjust parameters like timeframes, RSI/MACD settings, and backtest period to suit your trading strategy. - Use the generated signals and alerts to assist in identifying potential trend reversals. This script can be further expanded or customized depending on specific needs or additional indicators.