Example of a reversal sell signal Dow futures 1-hour chart [RCI three lines + BODSOR]

RCI 3-lineandBODSORusage examples

One of the characteristics of the RCI 3-line (RCI 9, RCI 26, RCI 52) is

“When the three RCI lines are aligned in the same direction, the price movement in that direction becomes larger.”

There is also the case that

RCI 26 and RCI 52 are rising (falling) while RCI 9 is falling (rising),
and if RCI 9 reverses“the three RCIs align and move in the same direction”becomes the situation.

Therefore, detecting when RCI 9 reverses is extremely important.

(Case by case, but simply waiting for a confirmed reversal of RCI 9 often causes significant delays.)


Hence, to detect as early as possible the moment when the momentum of RCI 9 to rise (fall) weakens, BODSOR was developed.



The figure below is an hourly chart of Dow futures from February 23 to March 1.

Dow futures, hourly

Upper panel:BODSOR
Lower panel: RCI 3-line (red: RCI 9, light blue: RCI 26, yellow: RCI 52)

From the above chart, on February 27 you can see the “RCI 3-line + BODSOR”
rebound selling signal (yellow arrow) lighting up.

Among the RCI 3-lines, only RCI 9 is clearly rising.
If RCI 9 reverses downward, all three RCIs may align and move downward.
That would imply a strong downward move in price as well.

In this kind of scenario,BODSORsignal (yellow arrow) lights up.

Immediate after the BODSOR signal lights up, three bearish candles occur. After that, price continues to fall smoothly. Therefore, in this case it functions well as a signaling tool for a pullback sell.Indicator that displays pullback buying and rebound selling signals [BODSOR]Twitterhttps://twitter.com/RCIX3LineBloghttp://bodsor.blog.fc2.com/Investment Navi+https://fx-on.com/navi/serial/?id=359YouTubehttps://www.youtube.com/channel/UCL-g5uAlesiWVJEDtWlFvGwUSD/JPY hourlyCAD/JPY hourly




Indicator that displays pullback buying and rebound selling signals [BODSOR]


Twitter
https://twitter.com/RCIX3Line

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

Investment Navi+
https://fx-on.com/navi/serial/?id=359

YouTube
https://www.youtube.com/channel/UCL-g5uAlesiWVJEDtWlFvGw


USD/JPY hourly



CAD/JPY hourly