GlossaryMTF RSI
MTF RSI
The MTF RSI shows the RSI of a fixed timeframe, even when your chart is on a different interval. On the 15-minute chart, for example, you can see where the daily RSI currently stands and put short-term signals into the bigger picture.
How to read it
- Zones as with the RSI: Above Overbought from and below Oversold to, the pane is shaded, with reference lines at both thresholds and at 50.
- Context for short intervals: A typical use is as a filter. For example, you only trade long setups on the 15-minute chart while the daily RSI is above 50 and not overbought.
- The right edge: The value at the far right is that of the current day and can still change until the daily close.
Limitations
- The daily RSI needs days. With length 14, the line only appears from the 16th day the chart goes back, and because of the smoothing's long memory it still differs slightly from the RSI on the daily chart in the first few weeks.
- On intervals above one day other than 4D or 1W (such as 3D or 1M), daily candles cannot be formed from the chart candles. The line labeled “1D” there shows the RSI of the chart candles themselves, offset by one candle. On these intervals, it is better to use the Relative Strength Index.