【RCI3 Main line + BODSOR】Swiss Franc / Japanese Yen 30-minute chart Retracement selling signal 20181026
※BODSOR is an indicator developed to improve entry accuracy when using three-line RCI to perform pullback buying or pullback selling.
RCI Three-Lineand BODSOR usage examples
One of the features of the RCI three-line (RCI9, RCI26, RCI52) is
“When all three RCIs are pointing in the same direction, the price movement in that direction tends to be stronger.”
This is the case.
If RCI26 and RCI52 are rising (falling) while RCI9 is falling (rising),
and when RCI9 reverses,“All three RCIs are pointing in the same direction.”This is the situation.
Therefore, it is very important to anticipate when RCI9 will reverse.
（Case by case, but simply waiting for the reversal of RCI9 to be confirmed often results in significant lag.)
Hence, BODSOR was developed to detect as early as possible the timing when the momentum of RCI9 to rise (or fall) weakens.
The figure below is a 30-minute chart of the Swiss franc yen.
Swiss Franc/Yen 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 could align to decline.
In other words, price may experience a strong drop.
In such a situationBODSOR returns/sell signal (yellow arrows) lights up.
Immediately after the signal lights, five consecutive bearish candles occur, and the price steadily declines.
An indicator developed to improve entry accuracy when using the RCI three-line for pullback buying or pullback selling
Twitter
https://twitter.com/RCIX3Line
Blog
http://bodsor.blog.fc2.com/
