【RCI3 Three-Line Plus BODSOR】GBPNZD 5-minute Chart Example of a Pullback/Sell Signal
※BODSOR is an indicator developed to improve the entry precision when taking pullback buys or pullback sells using the RCI three-line.
to enhance entering accuracy in pullback buying or selling using the RCI three lines.
RCI Three-LineandBODSORusage examples
One characteristic of the RCI three-line (RCI9, RCI26, RCI52) is
“When all three RCIs are aligned in the same direction, the price movement in that direction tends to be stronger.”
This is the concept.
When RCI26 and RCI52 are rising (or falling) and RCI9 is falling (or rising),
if RCI9 reverses,“All three RCIs align in the same direction.”This is what happens.
Therefore, it is very important to anticipate when RCI9 will reverse.
(Case by case, simply waiting for a definite RCI9 reversal often results in substantial delays.)
Thus, BODSOR was developed to detect as early as possible the timing when the momentum of the RCI9’s rise (or fall) weakens.
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The figure below is a five-minute chart of GBPNZD.
GBPNZD Five minutes chart (October 25, 2018)
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 could move downward together.
In other words, the price could also drop strongly.
In such a situation,BODSOR signals a pullback sell (yellow arrows) is lit.
From just after the signal lights, the price has been falling smoothly.
It is a very common pattern where the price pulls back after RCI all three lines stay up high and RCI9 drops.
then the pullback after the decline is targeted.
An indicator developed to improve entry accuracy when using the RCI three-line to perform pullback buying or pullback selling
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https://twitter.com/RCIX3Line
Blog
http://bodsor.blog.fc2.com/
