An indicator that shines in combination with the RCI3 single line【mBDSR】
“RCI Three Lines + mBDSR” Buy on Dips and Sell on Rallies
One of the characteristics of the RCI three-line setup (RCI9, RCI26, RCI52) is“When the three RCI lines are all pointing in the same direction, the price movement in that direction becomes larger.”This is the idea.
If RCI26 and RCI52 are rising (falling) and RCI9 is falling (rising), when RCI9 reverses“All three RCIs align in the same direction.”This is what happens. Thereforeit is very important to anticipate when RCI9 will reverse.
(Case by case, but simply waiting for the reversal of RCI9 often leads to a big delay.)
To detect as early as possible the moment when the momentum of the rise (or fall) of RCI9 weakens, the indicator 【mBDSR】 was developed.
Upper row:mBDSR
Lower row: RCI three lines (RCI9, 26, 52)
※ Note: This indicator (mBDSR) does not include an indicator that displays the RCI three lines.
Buying on dips:
When the pink star appears, at the next candle’s openpink arrowis displayed. In many cases, this aligns withthe moment when the short-term line of the RCI three lines (RCI9) loses downward momentum. Therefore, it can be a valid signal for buying on dips.
In the chart above, the area circled in pink ellipse shows a situation where only RCI9 among the RCI three lines clearly declines, and the mBDSR buy-on-dip signal lights up and works well.(In this example, the mBDSR signal lights up four candles before the candle where RCI9 reversal is confirmed.)
Selling on rallies:
When the yellow star appears, at the next candle’s openyellow arrowis displayed. This often coincides withthe moment when the short-term line of the RCI three lines (RCI9) loses upward momentum. Therefore, it can be a valid signal for selling on rallies.
In the chart above, the area circled in yellow ellipse shows a situation where only RCI9 among the RCI three lines clearly rises, and the mBDSR sell-on-rally signal lights up and works well.
(In this example, the mBDSR signal lights up four candles before the candle where RCI9 reversal is confirmed.)
The sales page contains numerous examples of buy-on-dips and sell-on-rallies.
Also, a bonus PDF summarizing tips on how to apply “RCI 3 lines + mBDSR” to trading is included.