MTF Confirmation v2

Multi-Timeframe Direction Confirmation Indicator
📊 Overview
This Pine Script indicator provides high-probability buy and sell signals by confirming that both 1-minute and 5-minute timeframes are moving in the same direction. It eliminates false signals by requiring multiple timeframe agreement before generating alerts.
🎯 How It Works
Trend Detection Method:

EMA Analysis: Uses 20-period Exponential Moving Average to determine trend direction
RSI Confirmation: 14-period RSI validates momentum (>50 bullish, <50 bearish)
Price Action: Confirms price is above/below EMA in trend direction
EMA Slope: Ensures EMA is actually rising (bullish) or falling (bearish)

Signal Generation:

BUY Signal: Only when BOTH 1M and 5M timeframes are bullish simultaneously
SELL Signal: Only when BOTH 1M and 5M timeframes are bearish simultaneously
Cooldown System: Prevents signal spam with 5-bar minimum between signals

📈 Visual Elements
Primary Signals:

Green "BUY" Labels: Appear below candles when both timeframes align bullish
Red "SELL" Labels: Appear above candles when both timeframes align bearish

Background Colors:

Light Green: Both timeframes trending up
Light Red: Both timeframes trending down
No Color: Timeframes not aligned or neutral

Trend Indicators:

Blue Dots: Show 1-minute timeframe trend direction
Orange Dots: Show 5-minute timeframe trend direction
Question Marks: Partial alignment (one timeframe trending, preparing for signal)

Status Table (Top Right):

Timeframe Status: Real-time direction of each timeframe
Alignment Status: Shows when timeframes are synchronized
Signal Status: Current signal state and cooldown timers
Cooldown Counters: Bars remaining until next signal available

⚙️ Customizable Settings
Technical Parameters:

EMA Period: Default 20 (trend smoothness)
RSI Period: Default 14 (momentum sensitivity)
Signal Cooldown: Default 5 bars (prevents overtrading)

Filter Options:

Volume Filter: Optional above-average volume requirement
Alerts Toggle: Enable/disable notifications
Table Display: Show/hide status information

🚨 Alert System

Instant Notifications: Alerts fire when both timeframes align
Price Information: Includes current price in alert message
Once Per Bar: Prevents alert spam during volatile periods
Clear Messages: "BUY SIGNAL: 1M and 5M both BULLISH" format

💡 Best Use Cases
Ideal For:

Scalping: Quick entries with multi-timeframe confirmation
Day Trading: Reliable intraday signals
Trend Following: Catching strong directional moves
Risk Management: Avoiding false breakouts

Timeframe Recommendations:

Works on any chart timeframe
Most effective on 1M, 5M, or 15M charts
Provides earlier signals than single-timeframe indicators

⚡ Key Advantages
Reduced False Signals:

Requires agreement between multiple timeframes
Filters out noise and whipsaws
Cooldown prevents overtrading

Clear Decision Making:

Simple buy/sell signals
Visual confirmation through colors and table
No complex interpretation required

Comprehensive Information:

Real-time status of all timeframes
Setup warnings with question marks
Countdown to next available signal

📋 Setup Instructions

Copy the Pine Script code
Open TradingView Pine Editor
Paste code and save
Add to chart
Configure settings to preference
Set up alerts for desired signals

🎪 Expected Performance

Signal Frequency: 3-8 signals per trading day (depending on volatility)
Quality Focus: Fewer but higher-probability setups
Win Rate: Improved due to multi-timeframe confirmation
Suitable for: Both automated and manual trading strategies