【RCI3 Single Line + BODSOR】Dip buy / pullback sell signal, common patterns - from yesterday's chart -

RCI Three-LineandBODSORusage examples

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

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

There is such a thing.

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 be the case.

Therefore, detecting when RCI9 will reverse becomes very important.

(Case by case, but simply waiting for the reversal of RCI9 to be confirmed often results in a big delay.)


To detect as early as possible the moment when the upward (downward) momentum of RCI9 weakens, BODSOR was developed.



(1) Buy-on-dip signal

This is yesterday’s (March 12, 2018) EUR/USD 5-minute chart.

EUR/USD 5-minute chart

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

Of the three RCI lines, only RCI9 is declining.
If RCI9 reverses upward, all three RCI lines may rise.
In other words, price could make a strong rise.

In this kind of situationBODSOR’s buy-on-dip signal (pink arrow) lights up.

After the BODSOR signal lights up, seven bullish candles occur in a row across the same line,showing that this case functions well as a buy-on-dip signal.(Note: In this example, if you wait for the confirmation of the RCI9 reversal, you’ll miss two bullish candles.)(2) Sell-on-rally signalThis is yesterday’s (March 12, 2018) USD/JPY 5-minute chart.USD/JPY 5-minute chartTop:BODSORBottom: RCI three-line (red: RCI9, light blue: RCI26, yellow: RCI52)Of the three RCI lines, only RCI9 is rising.If RCI9 reverses downward, all three RCIs may decline.In other words, price could fall strongly.In this kind of situationBODSOR’s sell-on-rally signal (yellow arrow) lights up.After the BODSOR signal lights up, three bearish candles occur in a row,showing that this case functions well as a sell-on-rally signal.Note: In this example, if you wait for the confirmation of the RCI9 reversal, you’ll miss two bearish candles.Indicator that displays Buy-on-dip/Sell-on-rally signals [BODSOR]Twitterhttps://twitter.com/RCIX3LineBloghttp://bodsor.blog.fc2.com/
showing that this case functions well as a buy-on-dip signal.

(Note: In this example, if you wait for the confirmation of the RCI9 reversal, you’ll miss two bullish candles.)


(2) Sell-on-rally signal

This is yesterday’s (March 12, 2018) USD/JPY 5-minute chart.

USD/JPY 5-minute chart

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

Of the three RCI lines, only RCI9 is rising.
If RCI9 reverses downward, all three RCIs may decline.
In other words, price could fall strongly.

In this kind of situationBODSOR’s sell-on-rally signal (yellow arrow) lights up.

After the BODSOR signal lights up, three bearish candles occur in a row,showing that this case functions well as a sell-on-rally signal.Note: In this example, if you wait for the confirmation of the RCI9 reversal, you’ll miss two bearish candles.Indicator that displays Buy-on-dip/Sell-on-rally signals [BODSOR]Twitterhttps://twitter.com/RCIX3LineBloghttp://bodsor.blog.fc2.com/
showing that this case functions well as a sell-on-rally signal.

Note: In this example, if you wait for the confirmation of the RCI9 reversal, you’ll miss two bearish candles.


Indicator that displays Buy-on-dip/Sell-on-rally signals [BODSOR]


Twitter
https://twitter.com/RCIX3Line

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