Pattern where sell signals appear in succession - Nikkei 225 Futures 1-hour chart [RCI 3 lines + BOD SOR]

RCI Three-LineandBODSORUsage Examples

One of the characteristics of the RCI three-line indicators (RCI9, RCI26, RCI52)

“When all three RCIs align in the same direction, price movement in that direction becomes larger.”

This is one of the features.

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

Therefore, detecting when RCI9 reverses is very important.

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


Therefore, to detect as early as possible the moment when the momentum of the rise (or fall) of RCI9 weakens, BODSOR was developed.



The figure below is an hourly chart of the Nikkei 225 futures from March 15 to March 20.

Nikkei 225 Futures — 1-Hour Chart

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

Looking at the upper chart, on March 16 and 19, the “RCI Three-Line + BODSOR”
rebound selling signals (yellow arrows) are lit.

Among the three RCIs, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCIs could align to descend.
In other words, prices may fall strongly.

In such a situation,BODSOR signals light up (yellow arrows).

As in this case, in a downtrend, every time the short-term line RCI9 rises,
a sell-eager (rebound selling) signal appears, which is a common pattern.

In both instances,the BODSOR signal lights up and then a bearish candle forms. After that, the price continues to fall smoothly. Therefore, the two signals above function well as rebound-selling signals.




Indicator that shows buy-the-dip/rebound-selling signals【BODSOR】


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USD/JPY — 1-Hour



CAD/JPY — 1-Hour