【RCI3 Main Line + BODSOR】EURJPY 15-minute chart Retracement Sell Signal 20181025

※BODSOR is an indicator developed to improve entry accuracy when buying on pullbacks or selling on rallies using the RCI3 lines.




RCI three-line and BODSOR usage examples

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

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

This is the case.

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

Therefore, detecting when RCI9 will reverse is extremely important.

(Case by case, but simply waiting for a clear reversal of RCI9 often results in significant delay.)


Thus, BODSOR was developed to detect as early as possible the timing when the momentum of RCI9's rise (fall) weakens.



The figure below is the EURJPY 15-minute chart.

EURJPY 15-minute chart

Upper panel:BODSOR
Lower panel: RCI three-lines (red: RCI9, light blue: RCI26, yellow: RCI52)

Among 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 decline strongly.

In this kind of situation,BODSOR’s pullback sell signal (yellow arrow) lights up.

From right after the signal lights, price declines smoothly.



An indicator developed to enhance entry accuracy when using the RCI three-lines for buying on pullbacks or selling on rallies
.


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