Regarding "Filter for Determining Inversion of RCI"

There have been numerous attempts to catch price reversals using movements of the RCI.

Last week“Filter for Determining RCI Reversal”was covered, as follows, and I wrote an article about“Three-stage Confirmation of Push and Pull Using RCI”.

　Indicator that adopts the “Three-stage Confirmation of Push and Pull Using RCI”

　　https://www.gogojungle.co.jp/finance/navi/articles/40398

This week I will introduce three different“Filters for Determining RCI Reversals”that differ from the above.

Set overbought/oversold lines for RCI; when RCI reverses, if it has reached the overbought/oversold line, a buy signal (or sell signal) will not light up.

This is a filter based on the idea that when RCI has reached the overbought/oversold line, there may be little room for further upward (or downward) movement.

① When a confirmed reversal to the upside occurs, since RCI has not reached the overbought line, a buy signal lights up (not affected by TB filter).

② When a confirmed reversal to the upside occurs, since RCI has reached the overbought line, the buy signal does not light up (affected by TB filter).

③ When a confirmed reversal to the upside occurs, since RCI has reached the overbought line, the buy signal does not light up (affected by TB filter).

④ When a confirmed reversal to the downside occurs, since RCI has not reached the oversold line, a sell signal lights up (not affected by TB filter).

⑤ When a confirmed reversal to the downside occurs, since RCI has reached the oversold line, the sell signal does not light up (affected by TB filter).

⑥ When a confirmed reversal to the downside occurs, since RCI has reached the oversold line, the sell signal does not light up (affected by TB filter).

If RCI is above a certain level (RCIUpperLevel), even if it is actually moving downward, it is treated as moving upward. Conversely, if RCI is below a certain level (RCILowerLevel), even if it is actually moving upward, it is treated as moving downward.

This is based on the idea that reaching RCIUpperLevel (RCILowerLevel) may indicate a very strong uptrend (downtrend) with sufficient room for upward (downward) movement.

① Since the start of the reversal to the downside is below the RCIUpperLevel, a sell signal does not light up (not affected by TR filter).

② Since the start of the reversal to the upside is below the RCIUpperLevel, a buy signal lights up (not affected by TR filter).

③ Since the start of the reversal to the upside is above the RCIUpperLevel, a buy signal does not light up (affected by TR filter).

④ When a reversal downward is confirmed and RCI remains above the RCIUpperLevel, a sell signal does not light up (affected by TR filter).

⑤ When the price crosses below RCIUpperLevel from above, a sell signal lights up (interpreted as a reversal downward).

⑥ Since the start of the reversal to the downside is above the RCILowerLevel, a sell signal lights up (not affected by TR filter).

⑦ Since the start of the reversal to the downside is above the RCILowerLevel, a sell signal lights up (not affected by TR filter).

⑧ Since the start of the reversal to the downside is below the RCILowerLevel, a sell signal does not light up (affected by TR filter).

⑨ When a reversal to the upside is confirmed and RCI remains below the RCILowerLevel, a buy signal does not light up (affected by TR filter).

⑩ When the price crosses above RCILowerLevel from below, a buy signal lights up (interpreted as a reversal upward).

Only when RCI is below BuyLevel and begins to reverse upward will a buy signal light up; likewise, only when RCI is above SellLevel and begins to reverse downward will a sell signal light up.

This is a filter that adjusts the magnitude of push and pull signals to be displayed by RCI BuyLevel and SellLevel, thereby avoiding capturing small pullbacks.

① Since the start of the reversal downward is below SellLevel, a sell signal does not light up (affected by TC filter).

②～⑤ Since the start of the reversal downward is above SellLevel, sell signals light up (not affected by TC filter).

⑥ Since the start of the reversal upward is above BuyLevel, a buy signal does not light up (affected by TC filter).

⑦～⑩ Since the start of the reversal upward is below BuyLevel, a buy signal lights up (not affected by TC filter).

Among MT4 indicators that incorporate filters (1) to (3) above, the following exist.

Also, the MT4 indicator above that includes filters (1) and (2) has the following.

Note that there is also an MT5 version of this【R3DRMA】.

If there is an opportunity, I would also like to introduce another“Filter for Determining RCI Reversals”as well.