TradingView - The Truth of MCDX Banker Indicator?

May 09, 2021

0

IPO Series Posts

For those who are active in Malaysia stock market or making trading based on technical analysis, you should about this technical indicator recently for pass few months.

That the indicator shown in the title, which is MCDX Smart Money Indicator ，or we can call it MCDX in short form. You may check this link for explanation in mandarin.

Initially, this technical indicator was shown in a China Mainland charting software named Homily, but then it started to appear in Malaysia stock market and also in TradingView platform from last year if not mistaken.

TradingView is a global multi-function chart solution provider, including charts display, trading ideas, sharing of technical indicator and etc.

This MCDX then became one of the most popular indicator used on TradingView by Malaysia users. This situation is slightly abnormal as the responses from other countries are not as popular as in Malaysia.

For most of the peoples or traders, they believe that this MCDX indicator can observe the flow of banker fund and able to understand change in banker chip in a particular stocks.

Illustration of MCDX indicator (Below part)

Lots of traders and investors tend to apply MCDX indicator to their chart with the "functions" this indicator can provide.

However, an incorrect information can be true as long as it is spread across the public for long time, sometime it could be a belief for someone at worst.This situation is roughly reflected in MCDX indicator.

I remember that a few years ago, before the COVID-19 epidemic, someone mentioned in the Telegram forum what is wrong with this MCDX indicator from few perspective .

The biggest question is whether it can be a technical indicator for observing the banker's capital flow or it is just a bluff to trick the public. The second question is how this indicator's values/data is calculated, and what are the parameters used etc.

Recently, some user in TradingView released the PineScript code of MCDX Indicator.This release directly expose the results and the truth of this indicator, there is no opportunity for any kind of defense now for MCDX.

Then let us have a look on how this PineScript source code look like：

Perhaps for those who didn't meet PineScript before might find it hard to understand, but this MCDX's basic source code is consider as a short indicator already.

As long as you understand technical analysis, by removing those variables that naming with "Banker", is there any logics or functions of these lines of code related to "Banker Fund" as what those users claimed before?

To put this MCDX's source code in simple words, this indicator basically is a Relative Strength Index (RSI) related indicator. Just look at it and count how many lines of them are using RSI.

Just simply ask yourself in your mind, how can a technical indicator that can observe "Banker Chips" doesn't even include volume as its parameter?

Besides, the basic parameter for RSI calculation is the closing price for each candle in a period, what is the reliability of MCDX merely based on the closing price?

As a conclusion, I don't denied MCDX as an indicator that evaluate the long and short side of a stock or index. But don't keep using any deceiving concepts like “Banker Fund” or “Banker Chip” to fool the public.

Next time if someone use MCDX and explain any concept related to “Banker Chip” or what，then all you need is just showing this post to him and let him know how wrong he/she is while showing how dedicated you are to search for the truth.😊

TradingView Indicator - Guppy Moving Averages by JustUncleL

TradingView Indicator - Custom MACD by Chris Moody

TradingView Indicator - Market Trading Sessions by Gunzo