【RCI3 One Line + BODSOR】 Nikkei 225 futures 4-hour chart pullback buy signal 20181031
※BODSOR is an indicator developed to enhance the entry accuracy when buying on dips or selling on rallies using three-line RCI.
It has been developed to improve the entry accuracy when using the three-line RCI for pullbacks and intrabody selling.
RCI Three-LineandBODSOR usages
One of the characteristics of the RCI three-line (RCI9, RCI26, RCI52) is
“When all three RCIs point in the same direction, the price movement in that direction tends to be larger.”
This is one of the features.
If RCI26 and RCI52 are rising (falling) while RCI9 is falling (rising),
when RCI9 reverses,“All three RCIs align in the same direction.”This is what happens.
Therefore, detecting when RCI9 will reverse becomes extremely important.
(Case by case, simply waiting for a confirmed reversal of RCI9 often leads to significant delays.)
Hence, BODSOR was developed to detect as early as possible the timing when the momentum of RCI9’s rise (fall) weakens.
This is the purpose of BODSOR.
The figure below shows the four-hour chart of the Nikkei 225 futures.
Nikkei 225 futures, 4-hour chart
Top: BODSOR
Bottom: RCI Three-Line (Red: RCI9, Light Blue: RCI26, Yellow: RCI52)
Dip-buy signal (pink arrows encircled)
Among the three RCIs, only RCI9 clearly declines.
If RCI9 reverses to rise, all three RCIs may rise together.
In other words, the price may rise strongly.
In this kind of situation,BODSOR dip-buy signal (pink arrow) lights up.
Right after the signal appears, two solid bullish candles form in succession, and the price continues to rise.
Using the three-line RCI for entry on dips and take-profits on rallies
to improve entry accuracy, this indicator was developed.
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: Dip-buy and rally-sell signals
※In the charts in this article, for convenience of explanation, circles, lines, and rectangles may be drawn.
Please understand.
