Pattern aiming at rebound from the RCI2 double bottom

RCI 3-LineandBODSORusage example

One of the characteristics of the three-line RCI (RCI9, RCI26, RCI52) is

“When all three RCIs line up in the same direction, price movement in that direction becomes larger”

there is such a thing.

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

Therefore, detecting when RCI9 will reverse becomes extremely important.

(Case by case, but simply waiting for a confirmed reversal of RCI9 often causes a large delay.)


Hence, to detect as early as possible the moment when the momentum of RCI9’s rise (fall) weakens, BODSOR was developed.



The figure below is the USD/JPY 1-hour chart from last Friday (February 23, 2018).

USD/JPY 1-Hour

Top: 1-hour EMA21 (orange)
Bottom: RCI three lines (red: RCI9, light blue: RCI26, yellow: RCI52)

First, the area indicated by the light blue square is in a state close to a so-called “double bottom” for RCI.

Therefore, there is a possibility of a relatively strong rebound that could surpass EMA21.

Hence, we consider taking a buy on the lower time frame.

The figure below is the lower time frame 15-minute chart.

USD/JPY 15-Minute

Top:BODSOR, 1-hour EMA21 (orange)
Bottom: RCI three lines (red: RCI9, light blue: RCI26, yellow: RCI52)

There are two occasions where only RCI9 is clearly declining among the three RCIs.
If RCI9 reverses and rises, all three RCIs may rise together.
In other words, price could rise strongly again.

In such a situation, on both occasionsBODSOR’s pullback buy signal (pink arrow) lights up.

(In this case, entering after confirming the reversal of RCI9 would result in a lag.)

The price ultimately rises beyond the 1-hour EMA21 (orange).


Pullback buy / retracement sell signaling indicator【BODSOR】


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