MCDX RSI Oscillator for Comparing Banker and Hot Money Strength

Summary

The MCDX indicator presents two RSI-derived histograms as proxies for institutional strength (“Banker”) and short-term speculative activity (“Hot Money”). Each RSI is adjusted by a base value, multiplied by a sensitivity factor, and clipped to a 0–20 range. The Banker uses a 50-period RSI with a base of 50 and sensitivity of 1.5; Hot Money uses a 40-period RSI with a base of 30 and sensitivity of 0.7. A constant line at 20 is labeled Retailer, with additional reference lines at 5, 10, and 15.

The document suggests comparing the two histograms: rising Hot Money with low Banker readings may indicate a move driven more by short-term speculation, while both rising may indicate broader strength. These labels are interpretations of price-derived RSI values; the indicator does not observe participant identities or actual flows. The document provides parameter definitions and code, but no performance testing or evidence that the participant proxies predict returns. It is therefore a visualization concept that requires independent validation before use as a trading signal.

Key ideas

• The indicator rescales separate RSI calculations for Banker and Hot Money into a clipped 0–20 range.
• The Banker series uses a longer period and higher base than the Hot Money series.
• A constant level of 20 is labeled Retailer, while 5, 10, and 15 serve as visual reference levels.
• Comparing the histogram heights is intended to distinguish sustained strength from faster speculative activity.
• The participant labels are interpretations of price data, not direct measurements of investor flows.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.