【RCI3 main line + BODSOR】 USD/JPY 5-minute chart pullback sell signal 20181026
※BODSOR is an indicator developed to improve entry accuracy when making buying on dips or selling on rallies using the RCI3ライン.
to enhance the entry accuracy.
RCI3ラインandBODSORusage examples
One of the features of RCI3ライン (RCI9, RCI26, RCI52) is
“When all three RCIs point in the same direction, the price movement in that direction tends to be larger.”
this is one of the characteristics.
If RCI26 and RCI52 are rising (descending) and RCI9 is falling (rising),
when RCI9 reverses“all three RCIs point in the same direction”this becomes the situation.
Therefore, detecting when RCI9 will reverse is extremely important.
(Case by case, simply waiting for a definitive reversal of RCI9 often results in significant delay.)
Hence, to detect as early as possible the timing when the momentum of rising (falling) RCI9 weakens, BODSOR was developed.
This is explained here.
The figure below is a USD/JPY 5-minute chart.
USD/JPY 5-minute chart
Top row:BODSOR
Bottom row: RCI3ライン (Red: RCI9, Light blue: RCI26, Yellow: RCI52)
Of the three RCI lines, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCIs could turn downward.
In other words, price could experience a strong decline.
In such a situation,the return-sell signal of BODSOR (yellow arrow)lights up.
From immediately after the signal lights up, the price declines smoothly.
In this example, the candle just before the reversal downward of the rising RCI9 confirms the return-sell signal upon its close.
It is confirmed that the return-sell signal lights up when the candle confirming the reversal is completed.
Using the RCI3ライン to buy on dips or sell on rallies requires an indicator developed to enhance entry precision.
for improving entry accuracy.
Twitter
https://twitter.com/RCIX3Line
Blog
http://bodsor.blog.fc2.com/
