[RCI3 Three Lines + BODSOR] AUD/JPY 4-hour chart pullback buy signal 20181102

※BODSOR is an indicator developed to improve the entry precision when buying on dips or selling on rallies using three RCI lines.




RCI Three-Line and BODSOR usage examples

One of the characteristics of the RCI three-line setup (RCI9, RCI26, RCI52) is

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

This is one of the features.

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

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.)


Hence, BODSOR was developed to detect as early as possible the timing when the momentum of RCI9 to rise (or fall) is weakening.



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


AUD/JPY 4-hour chart

Top: BODSOR
Bottom: Three-line RCIs (Red: RCI9, Light blue: RCI26, Yellow: RCI52)


Buy-the-dip signal (pink arrows circled)

Among the three RCIs, only RCI9 is clearly declining.
If RCI9 reverses to rise, all three RCIs may rise together.
In other words, price may rise strongly.

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

In the above example, after the signal appears, three bullish candles occur in succession, and prices continue to rise.



Using the three-line RCIs to enter on dips or to sell on rallies,
an indicator developed to improve 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 example of dip-buying and pullback-selling signals



※In the charts in this article, there are annotations such as circles, lines, and rectangles added for explanation purposes,
so please understand this.