"RCI3 main line + BODSOR" When you fall behind, it can work well if you respond on lower timeframes
※BODSOR is an indicator developed to improve the entry accuracy when applying a buy-the-dip or a pullback sell using three RCI lines.
It is designed to enhance the precision of entries in such scenarios.
RCI Three-Line and BODSOR usage examples
One of the characteristics of the RCI three-line (RCI9, RCI26, RCI52) is
“When all three RCIs are aligned in the same direction, price movement in that direction tends to be stronger.”
there is such a tendency.
If RCI26 and RCI52 are rising (or falling) and RCI9 is falling (or rising),
when RCI9 reverses“All three RCIs align and move in the same direction”will occur.
Therefore, detecting when RCI9 reverses is very important.
(Case by case, but simply waiting for a definitive reversal of RCI9 often results in significant delay.)
Hence, BODSOR was developed to detect as early as possible the timing when the momentum of RCI9 to rise (or fall) weakens.
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The figure below shows yesterday (Wednesday, March 7, 2018) USD/JPY 5-minute chart.
USD/JPY 5-minute chart
Top: BODSOR
Bottom: RCI Three-Lines (red: RCI9, light blue: RCI26, yellow: RCI52)
Among the RCI three-lines, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCIs may align and move downward.
That is, price could make a strong decline.
In such a situation,BODSOR‘pullback sell’ signal (yellow arrow) lights up.
After that, price does not fall sharply but gradually trends downward.
In this case, the pullback sell signal is functioning well.
Next, we will look at the time zone around the yellow-outlined area on the above figure using the lower timeframe 1-minute chart.
USD/JPY 1-minute chart
Top:BODSOR
Bottom: RCI Three-Lines (red: RCI9, light blue: RCI26, yellow: RCI52)
As seen above, on the 1-minute chart too, a pullback sell signal is lit.
Among the RCI three-lines, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCIs may align and fall.
That is, price could fall strongly.
In such a situation,BODSORpullback sell signal (yellow arrow) lights up.
Immediately after the signal lights, price starts to fall smoothly.
In this case, the pullback sell signal functions well.
If you lag behind on a higher time frame, acting on a lower time frame can work well.
Indicator displaying the push-up buy and pullback sell signals【BODSOR】
Twitter
https://twitter.com/RCIX3Line
Blog
http://bodsor.blog.fc2.com/
