Smart mcd

Smart mcd

MCD Hot Money visualizes three distinct market participant groups as color-coded histograms in a separate sub-window, all normalized to a 0–20 scale. The indicator uses a sensitivity-weighted, offset-adjusted RSI engine to reveal when large institutional capital is entering or exiting the market.

*** Group support: https://www.mql5.com/en/channels/vuongphamtrading

─── BUFFERS ───

• Retailer (Green) — fixed at 20, ceiling reference line
• Hot Money (Yellow) — short-term institutional flow, based on RSI(40) with base offset 30, sensitivity 0.7
• Banker (Red) — smart / large money flow, based on RSI(50) with base offset 50, sensitivity 1.5

Formula: Output = sensitivity × (RSI(period) − base) , clamped to [0, 20]

─── MARKET ZONES (read Banker level) ───

• 15 – 20 → Strong Bull: heavy institutional buying, strong uptrend
• 10 – 15 → Mild Bull: bullish bias, look for entry confirmation
• 8 – 12 → Neutral: no clear direction, avoid new positions
• 5 – 8 → Mild Bear: bearish bias, prepare short setups
• 0 – 5 → Strong Bear: heavy selling pressure, strong downtrend

─── SIGNALS ───

• BUY: Banker > 10 AND Hot Money crosses UP above Banker
• SELL: Banker < 10 AND Hot Money crosses DOWN below Banker
• Bullish Divergence: price forms lower low + Banker forms higher low (Banker zone < 8)
• Bearish Divergence: price forms higher high + Banker forms lower high (Banker zone > 12)

Always confirm divergence signals with a Hot Money crossover before entering.

─── STRATEGIES ─── Strategy 1 — Trend Following (Primary) Enter when Banker holds above/below 10 for 2+ bars AND Hot Money crosses in the same direction. Exit when Hot Money crosses back or Banker reverses through 10.

Strategy 2 — Divergence (Counter-Trend) Identify price vs Banker divergence, then wait for Hot Money crossover as entry trigger. Never enter on divergence alone.

Strategy 3 — Combined (Highest Probability) Divergence condition + crossover signal occur within 1–2 bars. Strongest setup, justifies tighter stops and slightly larger sizing.

─── TIMEFRAMES ───

• M5/M15: Low quality, high noise — scalping only
• H1: Medium — use H4 as confirmation filter
• H4: High — primary recommended timeframe
• D1: Very High — cleanest signals, position trading
• W1: Best — macro bias and trend confirmation

Multi-timeframe workflow: Check D1 for macro Banker direction → H4 for primary crossover → H1 for entry timing. Only trade when all timeframes agree.

─── INPUT PARAMETERS ───

• hot_money_sensitivity (0.7): RSI output multiplier for Hot Money
• hot_money_period (40): RSI lookback for Hot Money
• hot_money_base (30): RSI midpoint offset for Hot Money
• banker_sensitivity (1.5): RSI output multiplier for Banker
• banker_period (50): RSI lookback for Banker
• banker_base (50): RSI midpoint offset for Banker

Tuning: Reduce sensitivity on volatile pairs (XAUUSD, GBPJPY). Reduce periods on H1 and below. Keep banker_base at 50.

─── FILTERS ───

• 200 EMA: buy only above it, sell only below it
• ADX(14) > 20: confirms trend before trend-following entries
• Avoid trading when Banker is in the 8–12 neutral zone
• Avoid within 30 min of major news (NFP, FOMC, CPI)

─── RISK MANAGEMENT ───

• Stop Loss: below/above the nearest swing low/high, minimum 1× ATR(14)
• Take Profit: target 1.5R–2R minimum, scale out 50% at 1R
• Position size: risk 1–2% of equity per trade
• Reduce or skip when Banker is in neutral zone

For educational purposes only. Trading involves significant risk of loss.