【RCI3 Three-Line + BODSOR】EUR/JPY 5-minute chart Retracement Sell Signal

※BODSOR is an indicator developed to improve entry accuracy when using the three-line RCI (RCI3) for buying on dips or selling on rallies.
It is designed to enhance the precision of entries in such conditions.



RCI3 linesandBODSORusage examples

One feature 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 stronger.”

There is such a tendency.

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

Therefore, detecting when RCI9 reverses is extremely important.

(Case by case, but simply waiting for a definite 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’s rise (or fall) weakens.
This is the purpose of BODSOR.


The figure below is the 5-minute chart for EUR/JPY.

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

Upper panel:BODSOR
Lower panel: RCI3 lines (red: RCI9, light blue: RCI26, yellow: RCI52)

Among the RCI3 lines, only RCI9 is clearly rising.
If RCI9 reverses down, all three RCIs may move downward together.
In other words, price could undergo a strong decline.

In such a situation,BODSOR’s sell-on-rally signal (yellow arrow) lights up.

From right after the signal lights, price clearly moves down.

(Two bearish candles appear immediately after the signal.)



Using the RCI3 lines to buy on dips or sell on rallies
to improve entry precision,


Twitter
https://twitter.com/RCIX3Line

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

Investment 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-the-dip and sell-the-rally signals



※In the charts in this article, for ease of explanation, circles, straight lines, rectangles, etc., may be drawn.
Please note.