[RCI3 Three-Line + BODSOR] AUD/JPY 15-minute chart Retracement Sell Signal 20181026

※BODSOR is an indicator developed to improve the entry accuracy when buying on pullbacks or selling on rallies using the RCI 3-line.
to enhance the entry accuracy when making pullback buys or pullback sells using the RCI 3-line.



RCI 3-line and BODSOR usage examples

One of the features of the RCI 3-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 idea.

If RCI26 and RCI52 are rising (or falling) and RCI9 is falling (or rising),
when RCI9 reverses“All three RCIs point in the same direction”will be the case.

Therefore, detecting when RCI9 will reverse becomes extremely important.

(Case by case, simply waiting for RCI9 reversal to be confirmed often results in being late.)


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



The figure below shows the AUD/JPY 15-minute chart.

AUD/JPY 15-minute chart

Top: BODSOR
Bottom: RCI 3-line (Red: RCI9, Light blue: RCI26, Yellow: RCI52)

Of the three RCI lines, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCI lines may turn down together.
In other words, price may also experience a strong decline.

In such a situation,BODSOR’s sell-on-rally signal (yellow arrow) lights up.

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



An indicator developed to increase the entry accuracy when making pullback buys or sell-on-rallies using the RCI 3-line



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