Example of a dip-buy signal USD/CAD 1-hour chart [RCI 3 lines + BODSOR]

RCI Three-LineandBODSORapplications

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

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

This is one of the key ideas.

If RCI26 and RCI52 are rising (falling) while RCI9 is falling (rising),
when RCI9 reverses,“the three RCIs align in the same direction.”This is the situation.

Therefore, detecting when RCI9 will reverse is very important.

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


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


The figure below shows the USD/CAD 1-hour chart from March 26 to 29.

USD/CAD 1-hour chart

Top: BODSOR
Bottom: RCI Three-Line (Red: RCI9, Light blue: RCI26, Yellow: RCI52)

Looking at the upper chart, on March 27 there is a signal for the “three-line RCI + BODSOR”
pullback/buy signal (pink arrow) lighting up.

Among the three RCIs, only RCI9 is clearly declining.
If RCI9 reverses and rises, all three RCIs may rise together.
In other words, the price could rise strongly.

In this kind of situation,BODSOR signals light up (pink arrow).

Immediately after BODSOR signals light up, four consecutive bullish candles occur. After that,
the price continues to rise smoothly, so in this case it works well as a pullback-buy signal.



Indiator displaying pullback-buy and retracement-sell signals【BODSOR】


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USD/JPY 1-hour



CAD/JPY 1-hour