【RCI3 Main Line + BODSOR】GBPJPY 30-minute chart Retracement Sell Signal 20181024
※BODSOR is an indicator developed to improve the entry accuracy when buying on dips or selling on rallies using three RCI lines.
RCI Three-Line andBODSOR usage examples
One of the characteristics 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 larger.”
There is such a situation.
If RCI26 and RCI52 are rising (falling) and RCI9 is falling (rising),
when RCI9 reverses“the three RCIs align in the same direction”is achieved.
Therefore, detecting when RCI9 will reverse is extremely important.
(Case by case, but simply waiting for RCI9 reversal to confirm often leads to significant late entries.)
Hence, BODSOR was developed to detect as early as possible the moment when the momentum of RCI9 to rise (fall) weakens.
The chart below is the GBP/JPY 30-minute chart.
GBP/JPY 30-minute chart
Top: BODSOR
Bottom: RCI Three-Line (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 align downward.
In other words, price may also fall strongly.
In such a situation,BODSOR’s selling-on-rally signal (yellow arrow) lights up.
After the signal lights, the price steadily moves downward.
For entry accuracy when buying on dips or selling on rallies using the RCI three-line,
this indicator was developed.
Twitter
https://twitter.com/RCIX3Line
Blog
http://bodsor.blog.fc2.com/
