MCDX with MAs

In chart you see two indicators 1- In the chart, I use 'Fibo_MA with Toggleable 200 EMA Filter.' You can find it with my other scripts. 2- Oscillator MCDX with MAs.

📊 MCDX with MAs – Market Money Flow and Trend Insight

The MCDX with MAs indicator is a custom analytical tool designed to visualize money flow from different market participants—Bankers, Hot Money, and Retailers—using enhanced RSI-based logic and moving averages. It helps traders identify which type of participants are active and dominating at any moment and provides clear visual cues on potential entry/exit zones based on strength and positioning.

🔧 How It Works

This indicator uses a modified RSI formula to segment and visualize the activity of three trader groups:

Bankers (Smart Money) – Long-term, high-volume players

Hot Money – Medium-term, speculative capital

Retailers (Dumb Money) – Short-term, often trend-following participants

Each group has:

Custom RSI-based calculations

User-adjustable base levels, sensitivity, and period

An optional custom timeframe input for multi-timeframe analysis

📌 Overview of the Indicator

This indicator helps traders:

Identify momentum shifts using modified RSI values.

Visualize trend direction and strength via multiple moving averages.

Detect potential buy/sell signals based on crossovers, slope changes, and extreme levels.

Set alerts for actionable trading events.


🧮 RSI Calculation Logic

Each group's RSI is calculated with:

A base value, acting like a neutral threshold

A sensitivity multiplier, to adjust reactivity

Values are scaled and capped to a maximum (default: 20) for visual clarity

📈 Moving Averages Integration

Each RSI stream is paired with a customizable moving average, used to filter the flow strength:

You can choose MA type: EMA, SMA, WMA, RMA, SMMA

Bankers have three MAs, providing short-, mid-, and long-term perspectives

Color logic is applied based on whether RSI is above or below the selected MA



🎨 Color Coding (Visual Filters)

Each RSI bar is plotted as a colored histogram:

Banker RSI:

Above selected MA → Strong Green

Below → Light Green or User-defined

Hot Money RSI:

Above MA → Bright Yellow

Below MA → Light Yellow

Retailer RSI:

Above MA → Red (default)

Below MA → Light Red

This makes it easy to visually assess who's in control of the market.

📌 How to Use It
✅ Buy Signals (Bullish Bias)

Banker RSI is rising and above at least one MA

Retailer RSI is falling (indicates retail is exiting while smart money is entering)

Hot Money RSI also showing upward trend and above MA

Ideal entries occur when:

RSI Banker crosses above its MA(s)

Extreme lows in Hot Money or Banker RSI (below the extreme_low threshold)



❌ Sell Signals (Bearish Bias)

Banker RSI is falling and below all MAs

Retailer RSI is increasing (indicates retail is buying into weakness)

Hot Money RSI is also declining

Confirm with extreme highs (above the extreme_high level), signaling overbought zones



🛠️ Customization Options
⏱️ Timeframe

Choose a different timeframe for the entire indicator to align it with your strategy

Useful for multi-timeframe confirmations

📏 Reference Levels

Add static horizontal levels (level_1, level_2, level_3) for visual support/resistance zones

⚠️ Extreme Levels

Use extreme_high and extreme_low as thresholds to define exhaustion zones

🧠 Strategy Ideas

Combine with price action and volume

Use in confluence with support/resistance, divergence, or candle patterns

Adjust MAs to reflect the trend timeframe you’re trading

🔔 Alerts

Although this version doesn't include alerts, you can add logic to trigger alerts when:

Banker RSI crosses MA

Banker RSI enters/exits extreme levels

Retailer RSI changes direction

Multiple RSIs align for a trend shift

✅ Ideal For:

Swing traders identifying smart money accumulation/distribution

✅ Best Practices for Using This Indicator

Combine with Price Action: Use candlestick patterns or volume indicators to confirm signals.

Use Higher Timeframes for Filtering: Apply Banker RSI on higher TF for long-term trend context.

Set Alerts Strategically: Enable only relevant alerts to avoid overload.

Adjust Sensitivity Carefully: Fine-tune RSI sensitivity to match your asset’s volatility.

Monitor All Three RSIs Together: Each represents different market participant behavior.


Conclusion

The "MCDX with MAs" indicator is a comprehensive tool that combines RSI and moving average calculations to provide trading signals. By customizing the input parameters and paying attention to the alert conditions, traders can identify potential buy and sell opportunities based on the behavior of different market participants. Always backtest and validate the indicator with historical data and use it in conjunction with other analysis tools for better trading decisions