Example of a Short Sell Signal AUDUSD Daily Chart [RCI 3-line + BODSOR]
The figure below is a chart of AUDUSD on a daily timeframe.
AUDUSD Daily
Upper section:BODSOR
Lower section: RCI three-line indicator (Red: RCI9, Light blue: RCI26, Yellow: RCI52)
Mean-reversion sell signal (yellow arrows circled)
Among the three RCI lines, only RCI9 is clearly rising.
If RCI9 turns down, all three RCIs may start to decline.
In other words, prices may show a strong downward move.
In such a situationBODSORmean-reversion sell signal (yellow arrows) lights up.
Indicator displaying buying on dips and mean-reversion selling【BODSOR】
Twitter
https://twitter.com/RCIX3Line
Blog
http://bodsor.blog.fc2.com/
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https://fx-on.com/navi/serial/?id=359
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https://www.youtube.com/channel/UCL-g5uAlesiWVJEDtWlFvGw
Example of buying on dips / mean-reversion selling signals on USD/JPY 1-hour chart
Note: In this article's charts, for convenience of explanation, yen signs, straight lines, and squares may be drawn, so please be aware of this.
Please understand.