"RCI3 本ライン+ BODSOR" 戻り売りサインの例 USD/JPY 5分足 2/26 Translation: "RCI3 main line + BODSOR" example of a retracement sell signal USD/JPY 5-minute chart 2/26
RCI Three-LineandBODSORUsage Examples
One of the features of the three-line RCI (RCI9, RCI26, RCI52) is
“When the three RCI lines are all aligned in the same direction, the price movement in that direction tends to be larger.”
This is the case.
If RCI26 and RCI52 are rising (or falling) and RCI9 is falling (or rising),
when RCI9 reverses“All three RCI lines align and point in the same direction”is the situation that occurs.
Therefore, detecting when RCI9 will reverse is extremely important.
(Case by case, but simply waiting for a definite reversal of RCI9 often results in being significantly late.)
To address this, the BODSOR was developed to detect as early as possible the timing when the momentum of the rise (or fall) of RCI9 weakens.
The figure below shows USD/JPY 5-minute chart from this morning (February 26, 2018).
USD/JPY 5-minute Chart
Upper: BODSOR
Lower: RCI Three-Line (red: RCI9, light blue: RCI26, yellow: RCI52)
Among the three RCI lines, only RCI9 is rising.
If RCI9 reverses down, all three RCI lines may align to move downward.
In other words, price could also experience a strong decline.
In such a situation,BODSOR’s pullback-selling signal (yellow arrow) lights up.
After the BODSORsignal lights up, prices continue to decline,
so in this case the signal works well as a pullback-selling indicator.
Indicator displaying buying on dips and selling on rallies【BODSOR】
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http://bodsor.blog.fc2.com/