Multi-Timeframe Rsi-Mean Deviation (Normalized)

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RSI SIGMOID OSCILLATOR + MULTI-TIMEFRAME
Advanced RSI-EMA Deviation Analysis with Z-Score Normalization
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📊 OVERVIEW
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This indicator measures the deviation of RSI from its EMA and transforms it into a normalized 0-100 oscillator using z-score and sigmoid function. It provides multi-timeframe analysis with a clean visual dashboard, making it easy to spot momentum shifts across different time horizons.


🎯 KEY FEATURES
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✓ Z-Score Normalized RSI-EMA Deviation
✓ Sigmoid Transformation (0-100 scale with smooth transitions)
✓ Multi-Timeframe Support (compare up to 3 timeframes simultaneously)
✓ Interactive Dashboard (real-time values and trend indicators)
✓ Dynamic Color Coding (red below 50, unique colors above 50)
✓ Timeframe Labels (clear identification of each line)
✓ RSI Bollinger Bands (hidden background extreme detection)
✓ Clean Minimalist Design


⚙️ HOW IT WORKS
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1. DEVIATION CALCULATION
- Calculates: RSI - EMA(RSI)
- Measures how far RSI deviates from its moving average

2. Z-SCORE NORMALIZATION
- Converts deviation to z-score: (deviation) / stdev(deviation)
- Makes signals comparable across different market conditions

3. SIGMOID TRANSFORMATION
- Maps z-score to 0-100: sigmoid = 100 / (1 + e^(-k*z))
- Provides smooth, bounded oscillator with clear midline (50)

4. MULTI-TIMEFRAME ANALYSIS
- Displays current TF + 2 higher timeframes
- All calculations use identical parameters for consistency


📈 INTERPRETATION
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OSCILLATOR VALUES:
• Above 50 = Bullish momentum (RSI > its EMA)
• Below 50 = Bearish momentum (RSI < its EMA)
• Near 70 = Strong bullish (potential overbought)
• Near 30 = Strong bearish (potential oversold)

COLOR CODING:
• Blue line = Current timeframe
• Orange line = Higher timeframe 1 (default: 4H)
• Lime line = Higher timeframe 2 (default: 1D)
• Red = All timeframes when below 50

MULTI-TIMEFRAME SIGNALS:
• All 3 lines above 50 = Strong bullish alignment
• All 3 lines below 50 = Strong bearish alignment
• Mixed signals = Potential reversal or consolidation


🔧 PARAMETERS
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RSI Period (14): Base RSI calculation period
RSI EMA Period (14): EMA smoothing for RSI
Standard Deviation Period (20): Window for z-score calculation
Sigmoid Sensitivity (1.0): Controls oscillator responsiveness (0.1-10.0)
Bollinger Band Multiplier (2.0): For background extreme detection
Higher Timeframe 1 (240): First comparison timeframe
Higher Timeframe 2 (D): Second comparison timeframe


💡 USAGE TIPS
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1. TREND CONFIRMATION
- Use higher timeframes to confirm trend direction
- Only take longs when 4H/1D also above 50

2. DIVERGENCE DETECTION
- Watch for price making new highs/lows while oscillator doesn't
- Classic bullish/bearish divergence signals

3. OVERBOUGHT/OVERSOLD
- Values above 70: Consider taking profits or tightening stops
- Values below 30: Watch for reversal or continuation

4. TIMEFRAME ALIGNMENT
- Best trades occur when all timeframes align
- Mixed signals suggest waiting for clarity


⚠️ IMPORTANT NOTES
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• Not a standalone trading system - use with other confirmations
• Works best in trending markets
• Adjust sensitivity (k) for different instruments
• Higher k values = more responsive (more signals)
• Lower k values = smoother (fewer false signals)


📊 DASHBOARD
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The top-right table shows:
• TF: Timeframe identifier
• Signal: Current oscillator value (0-100)
• Trend: Green circle (≥50) or Red circle (<50)


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Created for multi-timeframe momentum analysis
Best used on 1H, 4H, or Daily charts
Combines statistical normalization with sigmoid smoothing
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⚠️ DISCLAIMER
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This indicator is provided for educational and informational purposes only.
It is NOT financial advice. Trading involves substantial risk of loss and is
not suitable for everyone. Past performance does not guarantee future results.

Always:
• Use proper risk management
• Combine with other analysis methods
• Test thoroughly before live trading
• Never risk more than you can afford to lose
• Consult a financial advisor for personalized advice


👍 SUPPORT THIS WORK
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