【RCI3 main line + BODSOR】GBPAUD 4-hour candle retracement sell signal example

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




RCI3-line and BODSOR usage examples

One of the features of the RCI3-line (RCI9, RCI26, RCI52) is

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

This is the case.

If RCI26 and RCI52 are rising (falling) and RCI9 is falling (rising),
when RCI9 reverses“All three RCIs align in the same direction” this becomes the situation.

Therefore, detecting when RCI9 will reverse is extremely important.

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


Therefore, BODSOR was developed to detect as early as possible the moment when the momentum of RCI9 rising (falling) weakens.



The chart below is EUR/GBP 4-hour chart.

GBP/AUD 4-hour chart

Upper: BODSOR
Lower: RCI3-line (Red: RCI9, Light blue: RCI26, Yellow: RCI52)

Among the RCI3-lines, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCIs could turn downward.
In other words, price could also drop sharply.

In such a situationBODSOR pullback/sell signal (yellow arrow) lights up.

From right after the signal lights, the price starts to decline smoothly.



An indicator developed to improve the entry precision when using RCI3-line to buy on dips or sell on rallies



Twitter
https://twitter.com/RCIX3Line

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