【RCI3 main line + BODSOR】Dollar/Yen 30-minute chart, retracement selling signal 20181026

※BODSOR is an indicator developed to improve the entry precision when making pullback buys or pullback sells using the RCI three-line setup.




RCI Three-Line and BODSOR usage examples

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

“When all three RCIs are aligned in the same direction, price movement in that direction tends to be stronger.”

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 line up in the same direction”this is what happens.

Therefore, detecting when RCI9 will reverse is extremely important.

(Case by case, simply waiting for the reversal of RCI9 to be certain often results in significant lag.)


Hence, BODSOR was developed to detect as early as possible the timing when the momentum of rising (or falling) RCI9 slows down.
BODSOR is designed for that purpose.


The figure below shows a USD/JPY 30-minute chart.

USD/JPY 30-minute chart

Top: BODSOR
Bottom: RCI Three-Line (Red: RCI9, Light Blue: RCI26, Yellow: RCI52)

Of the three RCI lines, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCIs may move downward together.
In other words, price could also drop sharply.

In this kind of situation,the return-sell signal of BODSORlights up (yellow arrow).

Immediately after the signal lights, the price starts falling smoothly.

In this example, the candle three bars before the confirmed reversal-down of the rising RCI9
is when the return-sell signal becomes confirmed.




To enhance entry precision when using the RCI three-line setup for pullback buys or pullback sells,
this indicator was developed.


Twitter
https://twitter.com/RCIX3Line

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