"RCI3 Three-Line + BODSOR" USDJPY and EURUSD both light up a signal just before sharp rise
※BODSOR is an indicator developed to improve the entry accuracy when performing pullback buying or pullback selling using the RCI three-line.
RCI three-line and BODSOR usage examples
One of the features of the RCI three-line (RCI9, RCI26, RCI52) is
“When all three RCIs point in the same direction, the price movement in that direction tends to be stronger.”
This is the case.
If RCI26 and RCI52 are rising (falling) and RCI9 is falling (rising),
when RCI9 reverses“All three RCIs point in the same direction” will be the situation.
Therefore it is very important to sense when RCI9 will reverse.
(Case by case, simply waiting for a confirmed reversal of RCI9 often causes a large delay.)
Thus, BODSOR was developed to detect as early as possible the timing when the momentum of RCI9 to rise (or fall) weakens.
The chart below is USD/JPY 5-minute chart from yesterday (Thursday, March 8, 2018).
USD/JPY 5-minute chart
Upper: BODSOR
Lower: RCI three-lines (Red: RCI9, Light blue: RCI26, Yellow: RCI52)
Of the three RCIs, only RCI9 is clearly declining.
If RCI9 reverses and rises, all three RCIs may rise together.
In other words, price may rise strongly.
In such a situation,BODSOR pullback-buy signal (pink arrow) lights up.
From right after the signal lights up, consecutive bullish candles appear and the price surges.
It is clear that it functions well as a pullback-buy signal.
Next, let’s look at yesterday (Thursday, March 8, 2018) EUR/USD 5-minute chart.
EUR/USD 5-minute chart
Upper:BODSOR
Lower: RCI three-lines (Red: RCI9, Light blue: RCI26, Yellow: RCI52)
Among the three RCIs, only RCI9 is declining.
If RCI9 reverses and rises, all three RCIs may rise together.
In other words, price may rise strongly.
In such a situation,BODSOR pullback-buy signal (pink arrow) lights up.
After the signal lights up, the price surges.
It is clear that it functions well as a pullback-buy signal.
Indicator that displays pullback-buy and pullback-sell signals: BODSOR
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Blog
http://bodsor.blog.fc2.com/
