“RCI3 本ライン＋ BOD SOR”で押し目買いの精度を高める

RCI Three-LineandBODSORusage example

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

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

This is the idea.

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

Therefore, detecting when RCI9 reverses is very important.

(Case by case, but simply waiting for a confirmed reversal of RCI9 often results in a big 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 yesterday’s USD/JPY 8-hour chart (Tuesday, March 6, 2018).

USD/JPY 8-hour chart

Lower row: RCI Three-Line (red: RCI9, light blue: RCI26, yellow: RCI52)

In the pink boxed area in the upper figure, the three RCI lines rise in sync, creating a very strong pattern.


Therefore, it is not strange to look for a buying opportunity on lower timeframes.

So, we will look at the next lower timeframe of 2 hours, which can be considered one level below the 8-hour chart.


USD/JPY 2-hour chart

Upper: BODSOR
Lower: RCI Three-Line (red: RCI9, light blue: RCI26, yellow: RCI52)

Among the three lines, only RCI9 is trending downward.
If RCI9 reverses upward, all three RCI lines may rise together.
In other words, price may rise strongly.

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


The subsequent 2-hour chart is as follows.


USD/JPY 2-hour chart(subsequent)

Upper:BODSOR
Lower: RCI Three-Line (red: RCI9, light blue: RCI26, yellow: RCI52)

BODSORsignals light up and a large bullish candlestick occurs immediately after,
indicating that, in this case, the pullback buying signal is functioning well.


Indicator displaying pullback buying and retracement selling signals [BODSOR]


Twitter
https://twitter.com/RCIX3Line

Blog
http://bodsor.blog.fc2.com/