【RCI3 Benchmark Line + BODSOR】CADJPY 15-minute chart retracement sell signal
※BODSOR is an indicator developed to improve the entry precision when buying on dips or selling on rallies using three-line RCI.
Three-line RCI and BODSOR usage examples
One of the characteristics of the three-line RCI (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.
If RCI26 and RCI52 are rising (falling) and RCI9 is falling (rising),
when RCI9 reverses,“All three RCIs are aligned in the same direction.”This means that.
Therefore, detecting when RCI9 will reverse is extremely important.
(Case by case, simply waiting for a confirmed reversal of RCI9 often results in significant lag.)
Hence, BODSOR was developed to detect as early as possible the timing when the momentum of the rise (or fall) of RCI9 weakens.
The figure below is the 15-minute chart of CADJPY.
CADJPY 15-minute chart (November 2, 2018)
Upper panel:BODSOR
Lower panel: Three-line RCI (Red: RCI9, Light blue: RCI26, Yellow: RCI52)
Only RCI9 among the three lines is clearly rising.
If RCI9 reverses downward, all three RCIs may turn downward together.
In other words, prices could experience a strong decline.
In such a situation,BODSOR’s sell-on-rally signal (yellow arrow) lights up.
After the signal lights up, price continues to fall smoothly.
(Right after the signal lights up, there is a small bullish candle, but then seven consecutive bearish candles follow.)
Using three-line RCI to buy on dips or sell on rallies,
an indicator developed to improve entry accuracy
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
Example of push-down buying and pullback selling signals on USD/JPY the 1-hour chart
※ In the charts in this article, for convenience of explanation, circles, straight lines, squares, etc. may be drawn, so please understand.
