An indicator that delivers power when combined with RCI【BODSOR・mBDSR】

There are quite a few investors who use RCI as one of their trading methods.

It goes without saying, but RCI is a technical indicator that captures the timing of when prices begin to rise and begin to fall, and many people actually use it in real trading.

Blacksun, the developer of BODSOR and mBDSR, presents a trading-method theory that checks three RCIs and custom indicators from the monthly chart to progressively shorter timeframes; first, let's read the free manual that explains how to use the three RCIs.

Hints for using RCI【Free PDF】

I've compiled handy tips for using the three-line RCI into a Free PDF.

In short, the manual defines the "three-line RCI" as displaying RCI9 as the short-term line, RCI26 as the mid-term line, and RCI52 as the long-term line, all simultaneously.

First, display RCI9 on the monthly chart. If even then the direction of whether the rate will go up or down isn't clear, refer to weekly RCI36.

If one month is four weeks, the period of monthly RCI9 is four weeks × nine months = 36 weeks.

Therefore, monthly RCI9 (36 weeks) = weekly RCI36 (36 weeks); however, since the monthly chart updates only once a month while the weekly chart updates once a week, if looking at monthly RCI9 doesn't clearly indicate the market direction, referring to weekly RCI36 can provide more detailed directional information, according to Blacksun, the developer.,the developer Blacksun writes.

By applying this idea to smaller timeframes—weekly RCI9, daily RCI9, 4-hour RCI9, 1-hour RCI9, 15-minute RCI9, 5-minute RCI9—and watching price movements, your market judgments using RCI will improve.

Indicator that is powerful in combination with RCI: BODSOR・mBDSRThe accompanying documentation provides tips on leveraging "RCI three lines +BODSOR・mBDSR" for trading, and demonstrates trading methods using BODSOR and mBDSR.

To illustrate a bit concretely, we will actually display the following on the USDCAD 4-hour chart.

　The linkage between the USDCAD rate and the three-line RCI seems apparent, but we will confirm it using shorter-timeframe buy signals.

Continuing to check smaller timeframes one after another, the result is as follows:We are looking at the USDCAD 1-minute chart here,and the trade method confirms the market direction with the signals from BODSOR・mBDSR and the RCI3 lines to determine the actual entry.Indicator that is powerful in combination with RCI: BODSOR・mBDSRwill be.

Written by Hayakawa