Hybrid Confluence (RSI,MFI,StochRSI) Two-Tier Momentum Framework

Many traders explore multi-oscillator hybrid confluence approaches that combine momentum and volume signals—most commonly RSI, Money Flow Index (MFI), and Stochastic RSI—to study stretched market conditions. These hybrid concepts are widely used to analyze potential exhaustion zones, cycle extremes, and periods of sustained buying or selling pressure across different timeframes.

This script does not replicate, reverse-engineer, or replace any paid or closed-source indicator.
Instead, it provides a fully transparent framework built exclusively from standard, well-documented technical indicators. All calculations are explicit and configurable, allowing traders to study hybrid momentum behavior without relying on proprietary logic or black-box tools.


What the Script Does

1. Builds a hybrid momentum confluence model

The script combines three widely used oscillators:
• RSI (Relative Strength Index) — price momentum
• MFI (Money Flow Index) — volume-weighted momentum
• Stochastic RSI — momentum relative to its own recent range

Each component operates on a normalized 0–100 scale, allowing meaningful comparison and aggregation.


2. Implements a clear two-tier signal structure

Instead of producing a single binary buy/sell output, the script separates early pressure from extreme conditions:

2-of-3 Confluence (Setups)
When any two of the three oscillators reach oversold or overbought levels:
• Displayed as semi-transparent circles
• Indicates building pressure or a developing condition
• Designed as a heads-up, not a trade signal

3-of-3 Confluence (Signals)
When all three oscillators reach oversold or overbought levels:
• Displayed as prominent vertical bars spanning the oscillator range
• Represents extreme momentum alignment
• Intended to highlight potential exhaustion zones


3. Visualizes sustained pressure using consecutive signal intensity

When 3-of-3 conditions persist across multiple bars:
• Each consecutive bar becomes progressively darker
• Up to six discrete intensity levels
• Darkness reflects duration and persistence, not prediction

This helps visualize scenarios where markets continue pushing higher or lower before a major turning point, rather than assuming a single signal marks the exact top or bottom.


4. Works across markets and timeframes

Because all inputs rely on standard technical indicators:
• Works on crypto, equities, futures, and FX
• Scales naturally from intraday to higher timeframes
• Can be used on Daily and multi-day charts for macro context


Why This Script Is Useful

Traditional oscillators often produce isolated signals that lack context. This framework adds clarity by:
1. Requiring multi-indicator agreement instead of single-signal triggers
2. Separating early pressure from extreme conditions
3. Showing how momentum can persist before a reversal
4. Avoiding binary “buy now / sell now” outputs
5. Remaining transparent and configurable

This makes the tool especially useful for:
• Swing traders
• Macro and cycle-focused traders
• Crypto traders studying extended momentum phases
• Analysts who prefer contextual signals over rigid rules


How to Use
1. Adjust RSI, MFI, and StochRSI lengths to suit your timeframe
2. Observe 2-of-3 circles as early warnings of building pressure
3. Watch 3-of-3 bars for extreme momentum alignment
4. Note increasing bar intensity as pressure persists
5. Combine with structure, trend, volume, or price action for decisions

This script is best used as a contextual tool, not a standalone trading system.


What This Script Is Not
• Not a recreation of any paid or proprietary indicator
• Not affiliated with any trading educator or platform
• Not intended as a predictive or standalone trading system
• Does not claim to identify exact tops or bottoms

All signals are derived solely from openly documented RSI, MFI, and Stochastic RSI calculations.


Important Notes
• This script is original, with a transparent methodology
• All calculations use standard, well-known technical formulas
• No hidden logic or undisclosed weighting is used
• Signal visuals are descriptive, not predictive


Disclaimer

This tool is provided for educational and analytical purposes only.
It does not constitute financial advice or a recommendation to trade.
Always validate settings, test on multiple assets and timeframes, and use proper risk management before trading live.