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MACDRSI+ Indicator Documentation

Advanced MACD-RSI Divergence Detector with Multi-Timeframe Analysis

Version Category Pine Script

Overview​

The MACDRSI+ indicator is a professional-grade technical analysis tool designed for serious traders. It combines a modified MACD and a multi-timeframe RSI to provide real-time, non-repainting divergence signals. By leveraging Pine Script's advanced features, this indicator offers a comprehensive solution for trend analysis, momentum evaluation, and precise trade entry signals.

This document provides a complete guide to understanding, configuring, and effectively utilizing the MACDRSI+ indicator in your trading strategy.

Key Features​

🎯 Core Functionality​

  • Multi-Timeframe Divergence Detection: Automatically analyzes and displays bullish and bearish divergences on the current timeframe and up to two higher timeframes. Higher timeframe divergences are highlighted with a thicker line for easy identification.

    Multi-Timeframe Divergence

  • Dynamic MACD Engine: The indicator features two distinct MACD modes to suit different trading styles:

    • Scalp Mode: Uses standard MACD settings for higher sensitivity, ideal for intraday and short-term trading.
    • Swing Mode: Employs a filtered MACD to identify larger, more significant market moves, perfect for swing and position trading.

    Trading Modes

  • Advanced RSI Overlay Bands: Instead of a traditional oscillator, RSI levels (70, 80, 90 for overbought and 30, 20, 10 for oversold) are projected directly onto the price chart as dynamic bands. This allows you to instantly see how price action relates to RSI-based support and resistance zones.

  • Comprehensive Information Table: A customizable on-chart table provides a multi-timeframe dashboard, showing RSI values, divergence status, and trend ratings at a glance.

    Information Table

🎨 Display & Customization​

  • Professional Color Themes: Choose from four professionally designed color themes to match your chart and preference:
    • Classic: High-contrast, eye-friendly colors.
    • Modern: Vibrant, material design-inspired colors.
    • Subtle: Low-contrast, muted tones for extended screen time.
    • Auto-Adaptive: Automatically syncs with your TradingView chart's theme.
  • Flexible Marker & Label Display: Show divergence markers and alerts on the main chart, the indicator subpane, or both.
  • Customizable Table: Control the size, position, and visibility of the multi-timeframe information table.
  • Performance Optimization: Configure bar limits for calculation to ensure smooth performance even on lower-end devices.

🔔 Advanced Alert System​

  • Multi-Condition Alerts: Create alerts based on a combination of MACD divergence and RSI extreme levels.
  • Multi-Timeframe Alert Logic: Specify which timeframes must confirm a signal before an alert is triggered.
  • Historical Alert Display: Toggle visibility of historical alert signals directly on your chart for back-testing and analysis.

Trading Guide​

Signal Interpretation​

The core strategy behind MACDRSI+ is to trade high-probability setups where both MACD divergence and RSI extremes align, preferably across multiple timeframes.

  1. Look for Divergence: Identify a bullish (price makes a lower low, MACD makes a higher low) or bearish (price makes a higher high, MACD makes a lower high) divergence on your primary timeframe.

  2. Check Higher Timeframes: Use the information table to see if the higher timeframes show a similar directional bias (e.g., bullish divergence or RSI oversold). The strongest signals occur when multiple timeframes are aligned.

    Multi-Timeframe Alignment

  3. Confirm with RSI Bands: For bullish signals, look for price to be interacting with or below the lower RSI bands (30, 20, 10). For bearish signals, look for price to be at or above the upper RSI bands (70, 80, 90).

  4. Execute Entry: Once conditions are met, an entry can be considered. The indicator will plot a historical 'Buy' or 'Sell' label for confirmed signals.

    Trade Entry Example

Best Practices​

  • Patience is Key: Wait for confluence. The highest probability trades occur when MACD divergence and RSI extremes align across at least two timeframes.
  • Context Matters: Use the indicator in conjunction with your existing analysis of market structure, support/resistance levels, and volume.
  • Risk Management: Always use a stop loss. A common placement is below the low of the divergence signal candle (for longs) or above the high (for shorts).

Configuration​

Main Parameters​

  • Trading Mode: Scalp / Swing
  • MACD Multiplier: Increases MACD sensitivity. Note: Best used in Scalp mode.
  • Markers: Main Chart / Sub Pane / Both / OFF - Controls where divergence labels appear.
  • RSI Bands: Minimal (70/30 bands) / Max (All bands)
  • Table: Main Chart / Sub Pane / OFF - Controls visibility of the MTF table.
  • Color Theme: Classic / Modern / Subtle / Auto

Alert Configuration​

You can create a new alert and select MACDRSI+ as the condition. The alert will trigger based on the settings configured in the indicator's 🔔 Alerts section.

  • Divergence Alerts: Enable/disable alerts for the current, 1st upper, and 2nd upper timeframes.
  • RSI Alerts: Enable/disable alerts for RSI overbought/oversold conditions on each timeframe.

Version History​

v2.2.0 (2025-06-28) - Professional Color System Overhaul

  • Replaced entire color palette with 4 professional, theme-driven systems.
  • Removed all custom color inputs for a unified visual experience.
  • Enhanced table and RSI band colors for superior readability.

v2.1.0 (2025-06-28) - Advanced Refactoring & Optimization

  • Added comprehensive input validation and error handling.
  • Introduced constants for all magic numbers, improving maintainability.
  • Refactored alert and table logic into dedicated helper functions.

v2.0.0 (2025-06-28) - Code Refactoring & Cleanup

  • Modularized code with helper functions.
  • Fixed forward reference issues and improved input naming.
  • Removed dead code and added professional section headers.

v1.1.0 (2024-11-23) - Display & Performance Improvements

  • Fixed marker and label display options.
  • Added multi-timeframe table with full customization.
  • Implemented bar and RSI limits to optimize performance.
  • Upgraded to Pine Script Version 6.

v1.0.0 - Initial Release

  • Dynamic MACD with custom EMA implementation.
  • Multi-timeframe divergence detection.
  • RSI overlay bands and basic alert system.

Technical Requirements​

  • Pine Script Version: v6
  • TradingView Plan: Works on all plans (Free, Pro, Pro+, Premium)
  • Access: This is an invite-only script. Please refer to the author's instructions on TradingView for access.

For support, please contact the author, Paul Mendes, at paul@pinescriptstrategy.com or visit pinescriptstrategy.com.