【RCI3 本ライン＋ BODSOR】EURNZD 4-hour chart Retrace-sell signal example
※BODSOR is an indicator developed to improve the entry accuracy when performing buy-the-dip or pullback selling using three RCI lines.
It is an indicator developed to enhance entry precision for buying on dips or selling on pullbacks using three RCIs.
RCI 3-line and BODSOR usage examples
One of the characteristics of the RCI 3-line (RCI9, RCI26, RCI52) is
“When all three RCIs point in the same direction, the price movement in that direction becomes stronger.”
This is one of the features.
If RCI26 and RCI52 are rising (or falling) while RCI9 is falling (or rising),
when RCI9 reverses“All three RCIs align in the same direction”this is the case.
Therefore, detecting when RCI9 will reverse is extremely important.
(Case by case, simply waiting for the reversal of RCI9 to be confirmed often results in significant delay.)
Hence, to detect as early as possible the moment when the momentum of RCI9 to rise (or fall) weakens, BODSOR was developed.
The figure below shows the EUR/NZD 4-hour chart.
EUR/NZD 4-hour chart
Top section:BODSOR
Bottom section: RCI 3-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 move downward.
In other words, there is a possibility of a strong price decline.
In such a situationBODSOR pullback/sell signal (yellow arrow) lights up.
From immediately after the signal lights, the price declines smoothly.
To improve entry accuracy when using the RCI 3-line for buying on dips or selling on pullbacks, this indicator was developed.
Twitter
https://twitter.com/RCIX3Line
Blog
http://bodsor.blog.fc2.com/
