[RCI3 Main Line + BODSOR] USDJPY 5-minute chart aimed at rising toward the midpoint value

RCI 3-LineandBODSORUsage Example

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

“When all three RCIs are aligned in the same direction, the price movement in that direction tends to be stronger.”

There is such a phenomenon.

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

Therefore, detecting when RCI9 will reverse is very important.

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


To detect as early as possible the timing when the rising (falling) momentum of RCI9 weakens, BODSOR was developed.



The figure below is yesterday's (March 14, 2018) USD/JPY 5-minute chart.

USD/JPY 5-minute chart

Top: BODSOR
Bottom: RCI 3-Line (red: RCI9, light blue: RCI26, yellow: RCI52)

Among the three RCI lines, only RCI9 is declining.
If RCI9 reverses upward, the three RCIs may all rise together.
In other words, price could rise strongly.

In such a situation,BODSOR’s buying-the-dip signal (pink arrow) lights up.

(BODSOR signal lighting time: 08:20 Japan time)

BODSORsignal lights up and price rises sharply toward the mid-price,
in this case, it functions well as a dip-buy signal.

(In this chart, the price retracement after the signal lights is only about 0.5 pips when considering the spread.)


Indicator displaying dip-buy and pullback-sell signals【BODSOR】


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