"RCI3 Three-Line + BODSOR" Buy signal example USDJPY 15-minute chart 2018/02/23

Three-line RCIandBODSORusage examples

One of the features of the three-line RCI (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 this phenomenon.

If RCI26 and RCI52 are rising (falling) while RCI9 is falling (rising),
when RCI9 reverses“the three RCIs line up in the same direction”is said to occur.

Therefore, detecting when RCI9 will reverse is extremely important.

(Case by case, waiting for a simple confirmation of RCI9 reversal often leads to a large delay.)


To detect as early as possible the timing when the momentum of RCI9 to rise (fall) weakens, BODSOR was developed.



The figure below is today’s (February 23, 2018) USD/JPY 15-minute chart.

USD/JPY 15-minute chart

Top: BODSOR
Bottom: three-line RCI (red: RCI9, light blue: RCI26, yellow: RCI52)

Among the three-line RCI, only RCI9 is declining.
If RCI9 reverses and rises, all three RCIs may rise together.
In other words, price may rise strongly.

In such a situation,BODSOR‘pullback buy’ signal (pink arrows) lights up.

After the BODSOR signal lights up, three consecutive bullish candles rise significantly,showing that in this case the pullback buy signal works well.(In practice, waiting for RCI9 to turn upward would cause a noticeable delay of two bullish candles in this case.)Indicator displaying pullback buy and return-sale signals【BODSOR】
showing that in this case the pullback buy signal works well.

(In practice, waiting for RCI9 to turn upward would cause a noticeable delay of two bullish candles in this case.)



Indicator displaying pullback buy and return-sale signals【BODSOR】