RSI Multi-Layer Entry Indicator

// This Pine Script™ code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © Ahmed - Quant-Edge Indicators
//@version=6
indicator(title="RSI Multi-Layer Entry Indicator (With Position Tracking)", overlay=true)

// --- RSI Settings ---
rsiPeriod = 14
rsiOverbought = 70
rsiOversold = 30

// --- Trade Settings ---
SL = 3 //(USD , for Gold)
TP1 = 3
TP2 = 10
entryUnits = 5 // 5 usd for gold chart. when we have a buy piosition for examole, and price goes down more than 5, then it is used to open a second layer buy position.

// --- Variables ---
rsi = ta.rsi(close, rsiPeriod)
entryPrice = 0.0
entryDirection = 0 // 1 for buy, -1 for sell
positionSize = 0 // Tracks the size of the current position
entryBar = 0 // Bar index of the entry
positionType = "" // Tracks the type of the current position (e.g., "Long", "Short")

// --- Entry Logic ---
if (rsi > rsiOverbought and entryDirection == 0)
    entryPrice := close
    entryDirection := -1
    positionSize := 1 // Initial position size (the first position in a row, the first layer.)
    entryBar := bar_index
    positionType := "Short"
    label.new(bar_index, high, "Short Entry", color=color.red, style=label.style_label_down)

if (rsi < rsiOversold and entryDirection == 0)
    entryPrice := close
    entryDirection := 1
    positionSize := 1 // Initial position size (the first position in a row, the first layer.)
    entryBar := bar_index
    positionType := "Long"
    label.new(bar_index, low, "Long Entry", color=color.green, style=label.style_label_up)

// --- Multi-Layer Entry ---
if (entryDirection != 0)
    if (entryDirection == 1 and close < entryPrice - entryUnits and positionSize < 2) // Long entry, price moved down
        positionSize := positionSize + 1
        label.new(bar_index, low, "Long Entry (Layer 2)", color=color.green, style=label.style_label_up)
    if (entryDirection == -1 and close > entryPrice + entryUnits and positionSize < 2) // Short entry, price moved up
        positionSize := positionSize + 1
        label.new(bar_index, high, "Short Entry (Layer 2)", color=color.red, style=label.style_label_down)

// --- Exit Logic ---
if (positionType == "Long" and close >= entryPrice + TP1)
    positionSize := 0 // Reset position size
    label.new(bar_index, high, "TP1 Long Hit", color=color.red, style=label.style_label_up)
    entryDirection := 0 // Reset entry direction

if (positionType == "Long" and close >= entryPrice + TP2)
    positionSize := 0 // Reset position size
    label.new(bar_index, high, "TP2 Long Hit", color=color.red, style=label.style_label_up)
    entryDirection := 0 // Reset entry direction

if (positionType == "Long" and close <= entryPrice - SL)
    positionSize := 0 // Reset position size
    label.new(bar_index, low, "SL Long Hit", color=color.red, style=label.style_label_up)
    entryDirection := 0 // Reset entry direction

if (positionType == "Short" and close <= entryPrice - TP1)
    positionSize := 0 // Reset position size
    label.new(bar_index, low, "TP1 Short Hit", color=color.green, style=label.style_label_down)
    entryDirection := 0 // Reset entry direction

if (positionType == "Short" and close <= entryPrice - TP2)
    positionSize := 0 // Reset position size
    label.new(bar_index, low, "TP2 Short Hit", color=color.green, style=label.style_label_down)
    entryDirection := 0 // Reset entry direction

if (positionType == "Short" and close >= entryPrice + SL)
    positionSize := 0 // Reset position size
    label.new(bar_index, high, "SL Short Hit", color=color.green, style=label.style_label_down)
    entryDirection := 0 // Reset entry direction

// --- TP/SL Levels ---
if (entryDirection != 0)
    if (entryDirection == 1) // Long
        var TP1Line = line.new(bar_index, entryPrice + TP1, bar_index, entryPrice + TP1, color=color.green, width=2, style = line.style_dashed) //title="TP1 Long"
        var TP2Line = line.new(bar_index, entryPrice + TP2, bar_index, entryPrice + TP2, color=color.green, width=2, style = line.style_dashed) //title="TP2 Long"
        var SLLine = line.new(bar_index, entryPrice - SL, bar_index, entryPrice - SL, color=color.green, width=2, style = line.style_dashed) //title="SL Long"
    else // Short
        var TP1Line = line.new(bar_index, entryPrice - TP1, bar_index, entryPrice - TP1, color=color.red, width=2, style=line.style_dashed) //title="TP1 Short"
        var TP2Line = line.new(bar_index, entryPrice - TP2, bar_index, entryPrice - TP2, color=color.red, width=2, style=line.style_dashed) //title="TP2 Short"
        var SLLine = line.new(bar_index, entryPrice + TP1, bar_index, entryPrice + TP1, color=color.red, width=2, style=line.style_dashed) //title="SL Short"

// --- Plot RSI ---
plot(rsi, color=color.blue, linewidth=2, title="RSI")
hline(rsiOverbought, color=color.red, linestyle=hline.style_dashed)
hline(rsiOversold, color=color.red, linestyle=hline.style_dashed)


//**Explanation of Changes:**

//- **`positionSize`:** Added a variable to track the size of the current position.
//- **`entryBar`:** Added a variable to store the bar index of the entry.
//- **`positionType`:** Added a variable to store the type of the current position (e.g., "Long", "Short").
//- **Tracking Position Size:** 
//    - `positionSize` is initialized to 1 when a new position is opened.
//    - It's increased by 1 when a multi-layer entry is triggered.
//    - It's reset to 0 when the position is closed (TP or SL hit).
//- **Exit Logic:** The `if` conditions now check for TP1/TP2/SL hits based on the `positionType` and `positionSize` to determine whether the position should be closed.
//- **Label Updates:** The label text now includes information about the TP/SL hit and the position size.