【RCI3 Main Line + BODSOR】 Pound-Dollar 15-minute chart Retracement Sell Signal
※BODSOR is an indicator developed to improve the entry accuracy when buying on dips or selling on rallies using three-line RCI (RCI3) analysis.
RCI3 Lines and BODSOR usage examples
One of the features of the RCI3 lines (RCI9, RCI26, RCI52) is
“When the three RCIs align in the same direction, price movement in that direction tends to be larger.”
This is the case.
When RCI26 and RCI52 are rising (or falling) and RCI9 is falling (or rising),
if RCI9 reverses,“the three RCIs align in the same direction”will occur.
Therefore, detecting when RCI9 will reverse is extremely important.
(Case by case, but simply waiting for the RCI9 reversal to be confirmed often results in a large delay.)
Thus, BODSOR was developed to detect as early as possible the timing when the upward (downward) momentum of RCI9 weakens.
The chart below is the GBP/USD 15-minute chart.
GBP/USD 15-minute chart (November 2, 2018)
Top: BODSOR
Bottom: RCI3 lines (red: RCI9, light blue: RCI26, yellow: RCI52)
Among the RCI3 lines, only RCI9 is clearly rising.
If RCI9 reverses and declines, all three RCIs may align to decline.
In other words, price could also fall strongly.
In such a situation,the sell-on-rally signal of BODSOR lights up (yellow arrow).
From immediately after the signal lights, price declines steadily.
（Two bearish candles occur right after the signal lights.)
When using the RCI3 lines to buy on dips or sell on rallies,
this indicator was developed to improve entry accuracy.
Twitter
https://twitter.com/RCIX3Line
Blog
http://bodsor.blog.fc2.com/
Invest Navi+
https://fx-on.com/navi/serial/?id=359
YouTube
https://www.youtube.com/channel/UCL-g5uAlesiWVJEDtWlFvGw
USD/JPY 1-hour chart: examples of buy-on-dip and sell-on-rally signals
※In the charts within this article, for convenience, circles, lines, and rectangles may be drawn.
Please understand.
