【RCI3 Three-line + BODSOR】AUDCAD Daily Chart Retracement Sell Signal Example

※BODSOR is an indicator developed to enhance the entry accuracy when buying on dips or selling on rallies using the RCI3-line.
It is designed to improve entry precision for entering on dips or selling on rallies using the RCI3-line.



RCI3-lineandBODSORusage examples

One of the features of the RCI3-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.”

There is such a tendency.

If RCI26 and RCI52 are rising (falling) while 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, simply waiting for a confirmed reversal of RCI9 often results in significant delay.)


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


The figure below shows AUDCAD on the daily chart.

AUDCAD Daily

Upper section:BODSOR
Lower section: RCI3-line (red: RCI9, light blue: RCI26, yellow: RCI52)

Among the RCI3-line, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCI lines may align downward.
In other words, there is a possibility of a strong price decline.

In such a situation,BODSOR's pullback sell signal (yellow arrow) lights up.

From just after the signal lights up, the price begins to fall smoothly.

（Five consecutive bearish candles occur immediately after the signal lights up.）



When using the RCI3-line to enter on dips or sell on rallies,
this indicator was developed to improve entry accuracy.


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https://twitter.com/RCIX3Line

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