Yesterday, a retracement sell signal appeared on the USD/JPY 1-hour chart [RCI three-line setup + BODSOR]

RCI Three-LineandBODSORUsage Examples

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.”

There is such a phenomenon.

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

Therefore, detecting when RCI9 will reverse becomes very important.

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


Hence, in order to detect as early as possible the timing when the momentum of RCI9 to rise (or fall) weakens, BODSOR was developed.



The figure below shows the 1-hour chart of USD/JPY for roughly the last three days up to yesterday (April 6).

USD/JPY 1-Hour Chart

Upper row:BODSOR
Lower row: RCI Three-Line (Red: RCI9, Light blue: RCI26, Yellow: RCI52)

Looking at the upper chart, yesterday (April 6), the signal of the combination “RCI Three-Line + BODSOR”
the sell-on-rallies signal (yellow arrow) was illuminated.

Among the RCI Three-Lines, only RCI9 was clearly rising.
If RCI9 reverses downward, all three RCIs could align to move downward.
In other words, price could experience a strong decline.

In such a situation,BODSORsignals illuminated (yellow arrow).

Right after the BODSOR signal illuminated, a bearish candle appeared. Since then, price has fallen without making a new high on the candle where the signal appeared. Therefore, in this case, it has worked well as a signal to sell on a pullback.Indicator to show Pullback Buy / Sell on Rallies [BODSOR]Twitterhttps://twitter.com/RCIX3LineBloghttp://bodsor.blog.fc2.com/Investment Navigator Plushttps://fx-on.com/navi/serial/?id=359YouTubehttps://www.youtube.com/channel/UCL-g5uAlesiWVJEDtWlFvGwUSD/JPY 1-HourCAD/JPY 1-Hour




Indicator to show Pullback Buy / Sell on Rallies [BODSOR]


Twitter
https://twitter.com/RCIX3Line

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

Investment Navigator Plus
https://fx-on.com/navi/serial/?id=359

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


USD/JPY 1-Hour



CAD/JPY 1-Hour