Katsu mtf RSI Cloud

Katsu MTF RSI and Cloud
Multi-timeframe RSI-based analytical tool for advanced traders

The Katsu MTF RSI is a sophisticated indicator that combines two RSI signals from different timeframes into one powerful toolkit. It’s perfect for those looking for multi-timeframe confluence to make more precise trading decisions.

Key Features:
Dual RSI Setup (fully customizable timeframe and length):
The first RSI behaves in a traditional way.
The second RSI uses color-coding to visually indicate the dominant trend direction:
🟢 Green = Bullish, 🔴 Red = Bearish.

RSI EMA – Smoothed RSI Average:
Used to determine short-term direction. This moving average is essential for crafting entries and forming your overall trading strategy.

Dynamic Midline – Adaptive Overbought/Oversold Levels:
The overbought/oversold zones are not fixed (like 70/30), but are dynamically adjusted based on the RSI’s average behavior.
When RSI touches these adaptive levels, a small blue arrow appears, signaling a potential momentum shift.
This provides more precise signals than traditional static thresholds (e.g., 70/30 or 80/20).

RSI-Based Cloud Visualization:
The RSI is used to generate a visual cloud that reflects market structure:

When RSI breaks out above the cloud, followed by RSI2, it can signal a strong entry point.
When RSI enters the cloud and reverses, it may indicate a potential exit or reversal zone.

The cloud uses three distinct colors to represent momentum:

• Green: RSI is above the cloud → Strong bullish pressure, price well above the trend zone.
  
• Red: RSI is below the cloud → Strong bearish pressure, price well below the trend zone.
  
• Yellow: RSI is inside the cloud → Sideways or corrective move, often a potential exit zone, as the trend may be stalling.
  

Visual Momentum Feedback (Background Highlight):
The background color shifts to indicate whether RSI is moving above or below 50, giving a quick read on bullish or bearish momentum.

This indicator is especially powerful for multi-timeframe strategies where entries are made on a lower timeframe, but confirmation comes from a higher one. It provides a dynamic, visual framework to stay in sync with the market’s rhythm.