Example of a bearish signal for the “RCI3 Triple Line + BODSOR” USDJPY 5-minute chart 2018/02/16

RCI3 Three-lineandBODSORapplications

One of the features of the RCI3 three-line (RCI9, RCI26, RCI52) is

“When the three RCIs line up in the same direction, the price movement in that direction tends to be larger.”

There is also the case that

RCI26 and RCI52 are rising (falling) while RCI9 is falling (rising);
when RCI9 reverses“the three RCIs line up in the same direction”is the situation that occurs.

Therefore, detecting when RCI9 reverses is extremely important.

(On a case-by-case basis, simply waiting for the reversal of RCI9 to be confirmed often leads to significant delay.)


To detect as early as possible the timing when the momentum of rising (falling) of RCI9 weakens, BODSOR was developed.



The figure below is an example of a USD/JPY 5-minute chart.

USD/JPY 5-minute chart

Upper part：BODSOR
Lower part: RCI3 lines (red: RCI9, light blue: RCI26, yellow: RCI52)

Among the three RCI lines, only RCI9 is rising.
If RCI9 reverses downward, all three RCI lines may align to move downward.
In other words, prices may also experience a strong decline.

In such a situation,BODSOR’s pullback selling signal (yellow arrow) lights up.

After the BODSORsignal lights up, candlesticks continue to form three bearish candles and drop sharply, so
in this case, it functions well as a pullback sell signal.

(In reality, waiting for RCI9 to start falling would cause a delay of two bearish candles in this case.)



Indicator that shows pullback buying and pullback selling signals 【BODSOR】