RSI/MFI - MTF - Entry signals/Trend colored bars - JD

//@version=5
//This indicator is designed to show give early entry signals as well as to follow trend moves, according to different settings.
//
//The indicator shows a histogram of the RSI ro MFI in relation to an ema of the RSI or MFI.
//The histogram is then smoothed to give early reversal/entry signals.
//The actual RSI/MFI line with oversold/overbought indication can be displayed or omitted, as preferred.
//in addition to the RSI/MFI line or as an alternative to it, the background colour can be set to change folowing the RSI/MFI signals.
//The timeframe can be chosen. Higher timeframes (eg. 3h) tend to give less false signals.
//
//@version=5
//added support for custom Multiple Time Frame selection.
//added option for choice of RSI or MFI as base indicator.
//added option for price bar coloring according to the indicator. (deselecting "borders" in the "style" tab is recommended)
//price bar coloring can be adjusted for different strategies:
//1. following the slope of the histogram (for faster entry/exit signals)
//2. according to positive or negative histogram (for longer moves)
//3. according to pos. or neg. RSI/MFI (for longer term trend holds)
//4. uptrend: biased towards faster buy signals and slower sell signals to stay in the uptrend
//5. downtrend: biased towards faster sell signals and slower buy signals to stay in the downtrend
//
//A longer timeframe (eg. 3x) is recommended for following trend moves.
//try different strategies to see what works better for RSI or MFI.
//
//JD.

indicator(title='RSI/MFI - MTF - Entry signals/Trend colored bars - JD', shorttitle='RSI/MFI - MTF - Entry signals/Trend colored bars - JD')
useCurrentRes = input(false, title='Use Current Chart Resolution?')
resCustom = input.timeframe(title='Use Different Timeframe? Uncheck Box Above', defval='180')
show_mfi = input.int(1, minval=1, maxval=2, title='base indicator: 1= RSI, 2= MFI')
src = close
len = input.int(14, minval=1, title='RSI/MFI Length')
len2 = input.int(4, minval=1, title='Smoothing Length')
th1 = input.int(70, minval=1, title='overbought')
th2 = input.int(30, minval=1, title='oversold')
show_rsi = input(true, title='show RSI or MFI line')
show_bg = input(false, title='show RSI or MFI background color')
color_bars = input(false, title='color pricebars')
color_base = input.int(1, minval=1, maxval=5, title='color bars based on: 1= histogram slope, 2=+/- histogram, 3=+/- rsi/mfi-line, 4= uptrend (sell bias), 5= downtrend (buy bias)')

res = useCurrentRes ? timeframe.period : resCustom

//MFI calcutaion
TypPrice = hlc3
upper_s = math.sum(volume * (ta.change(TypPrice) <= 0 ? 0 : TypPrice), len)
lower_s = math.sum(volume * (ta.change(TypPrice) >= 0 ? 0 : TypPrice), len)
mf = 100.0 - 100.0 / (1.0 + upper_s / lower_s)

//RSI/MFI selection
rsi_1 = ta.rsi(src, len)
rsi_base = show_mfi == 1 ? rsi_1 : mf

//output MTF
rsi = request.security(syminfo.tickerid, res, rsi_base)
smooth_base = ta.ema(rsi_base, len)
smooth = request.security(syminfo.tickerid, res, smooth_base)
smooth2 = ta.ema(rsi - smooth, len2)
smooth_up = smooth >= smooth[1] ? true : false
smooth2_up = smooth2 >= smooth2[2] ? true : false
histo = rsi - smooth

//color definition
color_1 = color.new(color.green, 0)
color_2 = color.new(color.green, 50)
emacolor = histo >= 0 ? smooth2_up ? color_1 : color_2 : smooth2_up ? color.maroon : color.red
smooth2color = smooth2 >= smooth2[2] ? color.green : color.red
color_3 = color.new(color.red, 75)
color_4 = color.new(color.maroon, 85)
color_5 = color.new(color.lime, 85)
color_6 = color.new(color.green, 90)
bcol = rsi < 50 ? rsi < th2 ? color_3 : color_4 : rsi > 50 ? rsi > th1 ? color_5 : color_6 : na
color_7 = color.new(color.maroon, 85)
color_8 = color.new(color.maroon, 20)
color_9 = color.new(color.lime, 85)
color_10 = color.new(color.green, 90)
color_11 = color.new(color.green, 30)
rsicol = bcol == color.new(color.red, 75) ? color.red : bcol == color_7 ? color_8 : bcol == color_9 ? color.lime : bcol == color_10 ? color_11 : na
plot(rsi - smooth, title='RSI - histo', style=plot.style_histogram, color=emacolor, linewidth=2, transp=0)
plot(smooth2, title='RSI - ma', color=smooth2color, linewidth=3, transp=20)
plot(show_rsi ? rsi - 50 : na, linewidth=2, color=rsicol, transp=0)
bgcolor(title='RSI overbought/oversold', color=show_bg ? bcol : na, transp=90)
barcolor_ref = color_base == 1 ? smooth2color : color_base == 2 ? histo >= 0 ? color.green : color.red : color_base == 3 ? rsi >= 50 ? color.green : color.red : color_base == 4 ? histo <= 0 ? smooth2color : color.green : color_base == 5 ? histo >= 0 ? smooth2color : color.red : na
color_12 = color.new(color.lime, 30)
color_13 = color.new(color.red, 20)
barc = barcolor_ref == color.green ? color_12 : color_13
barcolor(color_bars ? barc : na)