【RCI3 main line + BODSOR】GBPJPY 5-minute chart Retracement sell signal

※BODSOR is an indicator developed to improve the entry precision when buying on dips or selling on rallies using the RCI3 line.




RCI 3-Line and BODSOR usage examples

One of the features of the RCI3 lines (RCI9, RCI26, RCI52) is

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

This is the case.

When RCI26 and RCI52 are rising (falling) and RCI9 is falling (rising),
if RCI9 reverses,“All three RCIs point in the same direction.”This means.

Therefore, detecting when RCI9 will reverse is extremely important.

(Case by case, simply waiting for a confirmed reversal of RCI9 often causes considerable delay.)


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



The figure below is the 5-minute chart of GBP/JPY.

GBP/JPY 5-minute chart (November 2, 2018)

Top: BODSOR
Bottom: RCI3 lines (red: RCI9, light blue: RCI26, yellow: RCI52)

Among the three RCI lines, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCIs may align to descend together.
In other words, price could experience a strong drop.

In such a situation,BODSOR’s pullback sell signal (yellow arrows) lights up.

From right after the signal lights, the price clearly falls.

（Two bearish candlesticks occur immediately after the signal lights.)



When buying on dips or selling on rallies using the RCI3 lines, an indicator developed to
increase entry precision


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


JPY/USD 1-hour chart: examples of dip buying and rally selling signals



※In the charts in this article, for convenience of explanation, circles, straight lines, and squares may be drawn, so please note.