【RCI3 One-line + BODSOR】 Buy-the-dip signal example USD/CAD Daily

Three-line RCIandBODSORusage examples

One of the characteristics of three-line RCI (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 case.

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

Therefore, detecting when RCI9 reverses is extremely important.

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


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



The figure below shows this year's USD/CAD daily chart.

USD/CAD Daily

Top: BODSOR
Bottom: Three-line RCI (red: RCI9, light blue: RCI26, yellow: RCI52)

Among the three-line RCI, only RCI9 is moving downward.
If RCI9 reverses and rises, all three lines may rise together.
In other words, price could also rise strongly.

In such a situation,BODSORbuy-the-dip signal (pink arrow) lights up.

After the BODSOR signal lights up, five consecutive bullish candles occur,in this case, it functions well as a buy-the-dip signal.(Note that waiting for the confirmation of the reversal of RCI9 would delay by three bullish candles.)Indicator showing the buy-the-dip / sell-the-rally signal: BODSORTwitterhttps://twitter.com/RCIX3LineBloghttp://bodsor.blog.fc2.com/
in this case, it functions well as a buy-the-dip signal.

(Note that waiting for the confirmation of the reversal of RCI9 would delay by three bullish candles.)


Indicator showing the buy-the-dip / sell-the-rally signal: BODSOR


Twitter
https://twitter.com/RCIX3Line

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