Example of a Reversal Sell Signal CHF/JPY 1-Hour Chart【RCI 3-Line + BODSOR】
RCI 3-LineandBODSORApplications
One of the features of RCI 3 lines (RCI9, RCI26, RCI52) is
“If the three RCIs align in the same direction, the price movement in that direction becomes larger.”
This is what it means.
If RCI26 and RCI52 are rising (falling) and RCI9 is falling (rising),
when RCI9 reverses“the three RCIs align in the same direction”is the case.
Therefore, detecting when RCI9 will reverse is very important.
(Case by case, but simply waiting for RCI9 reversal to be confirmed often results in significant delay.)
Hence, to detect as early as possible the moment when the rise (fall) momentum of RCI9 weakens, BODSOR was developed.
The figure below is an hourly chart of CHF/JPY from March 26 to 29.
CHF/JPY 1-hour chart
Upper row:BODSOR
Lower row: RCI 3 lines (Red: RCI9, Light blue: RCI26, Yellow: RCI52)
Looking at the chart above, on March 27 there is a return-sell signal (yellow arrows) for the “RCI 3-Line + BODSOR.”
Among the three RCIs, only RCI9 is rising.
If RCI9 reverses downward, all three RCIs may align to the downside.
In other words, price could drop sharply.
In this kind of situationBODSORsignals light up (yellow arrows).
Immediately after the BODSOR signal lights up, four consecutive bearish candles occur. In this caseit is found to function well as a return-sell signal.Indicator that displays Buy the dip / Sell the rally signals【BODSOR】Twitterhttps://twitter.com/RCIX3LineBloghttp://bodsor.blog.fc2.com/Investment Navigator+https://fx-on.com/navi/serial/?id=359YouTubehttps://www.youtube.com/channel/UCL-g5uAlesiWVJEDtWlFvGwUSD/JPY 1-hour chartCAD/JPY 1-hour chart
it is found to function well as a return-sell signal.
Indicator that displays Buy the dip / Sell the rally signals【BODSOR】
Twitter
https://twitter.com/RCIX3Line
Blog
http://bodsor.blog.fc2.com/
Investment Navigator+
https://fx-on.com/navi/serial/?id=359
YouTube
https://www.youtube.com/channel/UCL-g5uAlesiWVJEDtWlFvGw
USD/JPY 1-hour chart
CAD/JPY 1-hour chart
