【RCI3 One-Line + BODSOR】Nikkei 225 Futures 4-Hour Chart Example of a Rebound Sell Signal

※BODSOR is an indicator developed to improve the entry accuracy when applying pullback buying or pullback selling using the RCI three-line (RCI3-line).




RCI3-line and BODSOR usage example

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

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

There is the case that when RCI26 and RCI52 are rising (or falling) and RCI9 is falling (or rising),


if RCI9 reverses“the three RCIs align in the same direction”, which means that

the price movement could turn sharply downward (or upward).

Therefore, detecting when RCI9 will reverse is extremely important. (Case by case, simply waiting for RCI9 reversal to be confirmed often leads to significant late entries.)


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



The figure below is the 4-hour chart of Nikkei 225 futures.

Nikkei 225 futures, 4-hour chart

Top: BODSOR
Bottom: RCI3-line (Red: RCI9, Light blue: RCI26, Yellow: RCI52)

Among the three RCI lines, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCI lines may align downward.
In other words, price could also move strongly lower.

In such a situation,BODSOR’s pullback selling signal (yellow arrows) lights up.

From right after the signal lights up, the price declines smoothly.



When using the RCI3-line to place pullback buying or pullback selling orders,
this indicator was developed to increase entry accuracy


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