Pattern aiming for rebound from RCI2 deep valley EUR/USD combination of 1-hour and 15-minute charts

RCI 3-lineandBODSORexamples of use

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

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

is this.

When RCI26 and RCI52 are rising (or falling) and RCI9 is falling (or rising),
if RCI9 reverses“the three RCIs will line up in the same direction”becomes true.

Therefore, detecting when RCI9 will reverse is very important.

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


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



The figure below is the EUR/USD 1-hour chart on February 26, 2018.

EUR/USD 1-hour

Lower row: RCI three lines (red: RCI9, light blue: RCI26, yellow: RCI52)

First, around the blue square, the RCI is near a so-called “double bottom.”

Therefore, there is a possibility of a relatively strong rebound.

Thus, we will consider buying on dips on the lower timeframe.

The below is the 15-minute chart, which is the lower timeframe.

EUR/USD 15-minute

Upper row:BODSOR
Lower row: RCI three lines (red: RCI9, light blue: RCI26, yellow: RCI52)

In this situation, only RCI9 is clearly declining among the three RCIs.
If RCI9 reverses upward, all three RCIs may rise together.
That is, price could rise strongly.

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

After the signal lights up, price movements rise steadily.


Pullback buy / pullback sell signal display indicator [BODSOR]


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