I do not doubt your best intentions and much of what you say makes sense - ie price action. BUT and its a big but this really is not a good indicator. It looks like it in hindsight but not in realtime. If you look at the code its simply the RSI and a moving average thereof on a higher TF. The problem is not that it gives false signals but when the RSI touches (not crosses but touches) the MA it gives a signal, then if it retraces you get no signal because it has not retouched. I repeat again, all indicators based on a higher TF, will either repaint, backpaint or in this case no paint until the higher TF closes. You cannot get away from that however hard you try.