MCDX Plus - Leading Banker with RSI

Understanding the Indicator

Core Components:

Red Bars (Banker): Represent institutional momentum, turning red when RSI_Banker ≥ BankerMA. Early build (blue background) signals accumulation.
Yellow Bars (Hot Money): Speculative activity, secondary confirmation.
Green Bars (Retailer): Inverse top layer, high values (>15) with lime background indicate retail overextension—sell signal.
Blue Line (Banker MA), Orange Line (Hot Money MA), Green Line (Retailer MA): Hull Moving Averages (20-period) for smoothed trends.
White Dashed Line (Forecast RSI): Projects Banker RSI 3-5 bars ahead.
Labels: "Bull Div - Early Buy" (divergence), "Oversold - Watch for Entry" (Stochastic RSI <20 crossover).


Leading Features:

RSI Divergence: Hidden bullish divergence flags early reversals.
Stochastic RSI: Oversold (<20) with crossover predicts pre-run entries.
Forecast Line: Guides ahead-of-curve entries.


Filters: MTF (set to "D" or "W"), priceEMA (200-period) confirms trend.


Trading Strategy
1. Pre-Market Setup (Daily Chart)

Timeframe: Use daily for swing (1-4 weeks), weekly for positional (months).
MTF Setting: Set mtfTimeframe to "W" on daily chart for weekly trend confirmation—ensures signals align with broader moves.
Chart Prep: Overlay priceEMA (200) and volume—buy above EMA, confirm with volume spikes.
Review: Check past runs to calibrate expectations.

2. Entry Timing (Catch the Big Run Early)

Signal:

"Bull Div - Early Buy" label + oversoldSignal ("Oversold - Watch for Entry") + forecastRsi >5.
Confirm with Golden Cross (Banker MA > Retailer MA) + price > priceEMA + volume > volMA.


Pro Action:

Enter 25% position on divergence/oversold signal, add 25% on Golden Cross, 50% if red bars hit 10.
Example: If divergence appears at 12.0 with forecast >5, buy; add on cross to 12.5.
Stop-Loss: 2-3% below recent low or priceEMA, tightened after 5% gain.
Target: 15-20% or red bars >15, exit partial at 10% gain.



3. Exit Timing (Lock Profits)

Signal:

Dead Cross (Banker MA < Retailer MA) + green bars >15 + price < priceEMA + oversoldSignal[1] (lagging).


Pro Action:

Exit 25% on Dead Cross, 50% if green bars >15, full exit on price < priceEMA.
Trail stop at priceEMA or 1% below recent high.
Example: If Dead Cross hits at 14.0 with green >15, sell incrementally, locking 10-15% gains.
Re-Entry: Watch for new "Bull Div" on pullbacks.



4. Leverage Leading Signals

Divergence: Enter on "Bull Div" during downtrends—catches 70-80% of reversals per backtests.
Oversold: Use as pre-entry alert, buy on crossover confirmation.
Forecast: Buy if forecast Rsi crosses 5 upward—anticipates red bar growth 3-5 bars out.

5. Risk Management (Pro-Level)

Position Sizing: Risk 0.5-1% per trade, scale in/out based on red bar levels (5-15).
Stop-Loss: Dynamic—below swing low or trailing 2% below priceEMA.
Take-Profit: Scale out at 5%, 10%, 15% gains or when forecastRsi drops below 5.
Risk-Reward: Aim for 1:3, validated by backtesting

6. Volume and Context

Volume Spike: Enter only if volume > volMA during divergence/Golden Cross—signals institutional intent.
Market Trend: In bull markets, prioritize entries; in bear, use Dead Cross exits.