MCL RSI Conflux v2.5 — Multi-Timeframe Momentum & Z-Score

Full Description
Overview

The MCL RSI Conflux v2.5 is a multi-timeframe momentum model that integrates daily, weekly, and monthly RSI values into a unified composite. It extends the classical RSI framework with adaptive overbought/oversold thresholds and statistical normalization (Z-score confluence).
This combination allows traders to visualize cross-timeframe alignment, identify synchronized momentum shifts, and detect exhaustion zones with higher statistical confidence.

Methodology

The script extracts RSI data from three major time horizons:

Daily RSI (short-term momentum)

Weekly RSI (intermediate trend)

Monthly RSI (macro bias)

Each RSI is optionally smoothed, weighted, and aggregated into a Composite RSI.
A Z-score transformation then measures how far each RSI deviates from its historical mean, revealing when momentum strength is statistically extreme or aligned across timeframes.

Key Features

Multi-Timeframe RSI Engine – Computes RSI across D/W/M intervals with individual weighting controls.

Adaptive Overbought/Oversold Bands – Automatically adjusts OB/OS thresholds based on rolling volatility (standard deviation of daily RSI).

Composite RSI Score – Weighted consensus RSI that represents total market momentum.

Z-Score Confluence Analysis – Identifies when all three timeframes are statistically synchronized.

Z-Composite Histogram – Displays aggregated Z-score strength around the midline (50).

Divergence Detection – Flags confirmed pivot-based bull and bear divergences on the daily RSI.

Dynamic Gradient Background – Shifts from red to green based on composite momentum regime.

Customizable Control Panel – Displays RSI values, Z-scores, state, and adaptive bands for each timeframe.

Integrated Alerts – For crossovers, risk-on/off thresholds, alignment, and Z-confluence events.

Interpretation

All RSI values above 50: multi-timeframe bullish alignment.

All RSI values below 50: multi-timeframe bearish alignment.

Composite RSI > 60: risk-on environment; momentum expansion.

Composite RSI < 45: risk-off environment; momentum contraction.

Adaptive OB/OS hits: potential exhaustion or mean reversion setup.

Green Z-ribbon: all Z-scores positive and aligned (statistical confirmation).

Red Z-ribbon: all Z-scores negative and aligned (broad market weakness).

Divergences: short-term warning signals against the prevailing momentum bias.

Practical Application

Use the Composite RSI as a global momentum gauge for position bias.

Trade only in the direction of higher-timeframe alignment (avoid countertrend RSI).

Combine Z-ribbon confirmation with Composite RSI crosses to filter noise.

Use divergence labels and adaptive thresholds for risk reduction or exit timing.

Ideal for swing traders and macro momentum models seeking trend synchronization filters.

Recommended Settings
Market Mode k-Band Lookback Use Case
Stocks / ETFs Adaptive 0.85 200 Medium-term rotation filter
Crypto Adaptive 1.00 150 Volatility-responsive swing filter
Commodities Fixed 70/30 100 Mean reversion model
Alerts Included

Daily RSI crossed above/below Weekly RSI

Composite RSI > Risk-On threshold

Composite RSI < Risk-Off threshold

All RSI aligned above/below 50

Z-Score Conformity (All positive or all negative)

Overbought/Oversold triggers

Author’s Note

This indicator was designed for research and systematic confluence analysis within Mongoose Capital Labs.
It is not financial advice and should be used in combination with independent risk assessment, volume confirmation, and higher-timeframe context.