【RCI3 Single Line + BOD SOR】GBP/JPY 4-hour time frame pullback buy signal 20181031

※BODSOR is an indicator developed to improve the entry accuracy when buying on dips or selling on rallies using three-line RCI (RCI3).




RCI Three Lines and BODSOR usage examples

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

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

There is such a phenomenon.

If RCI26 and RCI52 are rising (falling) while RCI9 is falling (rising),
when RCI9 reverses,“all three RCIs move in the same direction” becomes the case.

Therefore, predicting when RCI9 will reverse becomes extremely important.

(Case by case, simply waiting for a confirmed reversal of RCI9 often leads to significant delay.)


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



The figure below is the 4-hour chart of GBP/JPY.


GBP/JPY 4-Hour Chart

Upper: BODSOR
Lower: RCI Three Lines (Red: RCI9, Light Blue: RCI26, Yellow: RCI52)


Buy the dip signal (pink arrow circled)

Among the three RCI lines, only RCI9 is clearly declining.
If RCI9 reverses and rises, all three RCIs may rise together.
In other words, price may experience a strong rise.

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

Right after the signal appears, a sequence of bullish candles can be seen.


An indicator developed to increase entry accuracy when using RCI3 lines for buying on dips or selling on rallies
.


Twitter
https://twitter.com/RCIX3Line

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

Investment Navigator Plus
https://fx-on.com/navi/serial/?id=359

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


USD/JPY 1-hour Chart Example of Dip Buy and Rally Sell Signals



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