[RCI3 Single Line + BODSOR] USD/JPY 5-minute chart pullback buy signal 20181029

※BODSOR is an indicator developed to improve the entry accuracy when purchasing on dips or selling on rallies using the RCi3 line.




RCI3-line and BODSOR usage examples

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

“When all three RCIs are pointing in the same direction, price movement in that direction tends to be larger.”

This is one of the features.

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

Therefore, detecting when RCI9 reverses is extremely important.

(Case by case, simply waiting for a confirmed reversal of RCI9 often results in significant delays.)


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



The figure below is the USD/JPY 5-minute chart.


USD/JPY 5-minute chart

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


Dip-buy signal (pink arrows circled)

Among the three RCI lines, only RCI9 is clearly moving downward.
If RCI9 reverses upward, all three RCIs may move upward together.
In other words, price could rise strongly.

In such a situation,BODSOR dip-buy signal (pink arrow) lights up.

From immediately after the signal, price rises steadily.




Twitter
https://twitter.com/RCIX3Line

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

Investment Navi+
https://fx-on.com/navi/serial/?id=359

YouTube
https://www.youtube.com/channel/UCL-g5uAlesiWVJEDtWlFvGw


Example of dip-buy and rally-sell signals on USD/JPY 1-hour chart



※In the charts in this article, for convenience of explanation, circles, lines, and squares may be drawn,
so please understand.