【RCI3 main line + BODSOR】AUD/JPY 5-minute chart Retracement sell signal 20181029

※BODSOR is an indicator developed to improve the entry accuracy when using the RCI three-line (RCI3) setup for catching pullbacks and area entries.
to enhance the entry accuracy when using pullbacks for buying on dips or selling on rallies.



RCI three-lineandBODSOR usage examples

One of the characteristics of the RCI3 (RCI9, RCI26, RCI52) is

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

There is such a tendency.

If RCI26 and RCI52 are rising (falling) and RCI9 is falling (rising),
when RCI9 reverses,“all three RCIs point in the same direction.”This is what happens.

Therefore, it is extremely important to detect when RCI9 will reverse.

(Case by case, simply waiting for RCI9 reversal to be confirmed often leads to significant delays.)


Hence, BODSOR was developed to detect as early as possible the moment when the momentum of RCI9 to rise (or fall) weakens.
This is the purpose behind BODSOR.


The figure below is the AUD/JPY 5-minute chart.

AUD/JPY 5-minute chart (October 26–29, 2018)

Top: BODSOR
Bottom: RCI3 lines (red: RCI9, light blue: RCI26, yellow: RCI52)

Among the three RCI lines, only RCI9 is clearly rising.
If RCI9 reverses and falls, all three RCIs could move down together.
In other words, there is a possibility of a strong price decline.

In such a situation,the returning-sell signal of BODSORlights up (yellow arrow).

From right after the signal lights up, the price clearly moves lower.



To increase the entry accuracy when using the RCI3 lines for buying on dips or selling on rallies
this is an indicator developed for that purpose


Twitter
https://twitter.com/RCIX3Line

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