[RCI3 One Line + BODSOR] Example of a Selling Signal Reversal GBP/USD Daily

RCI Three-LineandBODSORusage examples

One of the characteristics of the RCI Three-Line (RCI9, RCI26, RCI52) is

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

There is something like this.

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

Therefore, detecting when RCI9 reverses is very important.

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


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



The figure below shows the GBP/USD daily chart since the beginning of this year.

GBP/USD Daily

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

Among the three RCI lines, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCIs may move downward together.
In other words, price could also fall strongly.

In such a situation,BODSORreturning-sell signal (yellow arrow) lights up.

After the BODSORsignal lights up, four bearish candles appear in a row, so
in this case the return-sell signal is functioning well.

(Note: waiting for the confirmation of the RCI9 reversal downward would cause a delay of three candles.)


Indicator displaying Buy on Dips / Sell on Rallies [BODSOR]


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