Timing for using RCI to catch pullbacks, profit from rebounds, and anticipate trend reversals
There have been many attempts to capture price reversals using the movement of RCI.
We have introduced some of these attempts in three installments so far, as follows.
Indicator that adopts the three-stage judgment of push and pull using RCI
About the filter for determining the reversal of RCI
Indicator that adopts the two-stage judgment of push and pull using RCI
In this article, when aiming for a bounce buy, a pullback sell, or a trend reversal, we introduce the timing to generate signals based on the movement of RCI“Normal”and“Semi-Aggressive”as well as“Aggressive”concepts.
“Normal”and“Semi-Aggressive”andconcepts are as follows.
Schematic diagram of RCI movement
① Aggressive version
A buy signal lights up when RCI breaks above the pullback buy level (oversold line) from top to bottom.
② Semi-Aggressive version
A buy signal lights up when RCI, from below the pullback buy level (oversold line), moves from downward to upward while staying below the pullback buy level (oversold line).
③ Normal version
A buy signal lights up when RCI breaks above the pullback buy level (oversold line) from bottom to top.
④ Aggressive version
A sell signal lights up when RCI breaks below the pullback sell level (overbought line) from bottom to top.
⑤ Semi-Aggressive version
A sell signal lights up when RCI, from above the pullback sell level (overbought line), turns from up to down while staying above the pullback sell level (overbought line).
⑥ Normal version
A sell signal lights up when RCI breaks below the pullback sell level from top to bottom.
There are MT4 indicators that adopt the three approaches described above, including the following.
Indicator that strongly supports pullbacks and pullbacks using three RCI lines【R2RCI】
Indicator that strongly supports pullbacks and pullbacks using RCI and MA【R1MA2】
Indicator that strongly supports pullbacks and pullbacks using RCI and MA with two-stage judgment【R1MAUL】
Examples of signals for【R1MAUL】
Main window: Signals of R1MAUL
(1: Aggressive, 2: Semi-Aggressive, 3: Normal version)
Sub window: RCI9
For details on each indicator, please refer to the product overview pages above.
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For Blacksun indicators (list), please see the following article on Investment Navi+.
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