【RCI3 main line + BODSOR】USD/JPY 1-hour chart pullback buying signal 20181031
※BODSOR is an indicator developed to improve the entry precision when applying pullback buying or pullback selling using three-line RCI.
to enhance the entry accuracy when using the RCI three-line method for buying on dips or selling on rallies.
RCI three-line and BODSOR usage examples
One of the characteristics of the RCI three-line (RCI9, RCI26, RCI52) is
“When the three RCIs align in the same direction, price movement in that direction tends to be larger.”
There is such a tendency.
When RCI26 and RCI52 are rising (or falling) and RCI9 is falling (rising),
if RCI9 reverses“the three RCIs align in the same direction”this becomes the case.
Therefore, detecting when RCI9 will reverse is very important.
(Case by case, simply waiting for a confirmed reversal of RCI9 often leads to being left behind significantly.)
Thus, BODSOR was developed to detect as early as possible the timing when the momentum of RCI9 to rise (or fall) weakens.
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The figure below is the USD/JPY 1-hour chart.
USD/JPY 1-hour chart
Upper row:BODSOR
Lower row: RCI three-line (red: RCI9, light blue: RCI26, yellow: RCI52)
Buy on dips signal (pink arrows circled)
Among the RCI three-lines, only RCI9 is clearly decreasing.
If RCI9 reverses and rises, all three RCIs may rise together.
In other words, the price movement could become a strong rise.
In such a situation,BODSOR buy-on-dip signal (pink arrows) lights up.
From the moment the signal occurs, the price rises steadily.
Using the RCI three-lines to execute pullback buying or rally selling
to increase entry accuracy
Twitter
https://twitter.com/RCIX3Line
Blog
http://bodsor.blog.fc2.com/
Investment Navigator+
https://fx-on.com/navi/serial/?id=359
YouTube
https://www.youtube.com/channel/UCL-g5uAlesiWVJEDtWlFvGw
USD/JPY 1-hour chart: Examples of pullback buying and pullback selling signals
※In the charts within this article, for ease of explanation, circles, straight lines, squares, etc. may be drawn.
Please understand.
