[RCI3 Three-Line＋BODSOR] Kiwi Yen 30-minute Chart Retracement Sell Signal
※BODSOR is an indicator developed to improve entry accuracy when buying on dips or selling on rallies using three-line RCI.
to use the three-line RCI for better entry accuracy.
RCI Three-Line and BODSOR example usages
One of the characteristics of the RCI three-line (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) and RCI9 is falling (rising),
when RCI9 reverses,“All three RCIs point in the same direction”will be the case.
Therefore, it is very important to anticipate when RCI9 will reverse.
(Case by case, but simply waiting for a confirmed reversal of RCI9 often results in large delays.)
Thus, BODSOR was developed to detect as early as possible the timing when the momentum of RCI9 rising (or falling) weakens.
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The figure below is a 30-minute chart of Kiwi yen.
Kiwi Yen 30-minute chart (November 2, 2018)
Upper: BODSOR
Lower: RCI Three-Line (Red: RCI9, Light Blue: RCI26, Yellow: RCI52)
Of the three RCI lines, only RCI9 is clearly rising.
If RCI9 reverses downward, the three RCIs could all be descending.
In other words, price could also fall strongly.
In this kind of situation,BODSOR signals a pullback selling signal (yellow arrow).
From right after the signal lights up, the price falls smoothly.
(Two bearish candles appear immediately after the signal lights up.)
When using the three-line RCI to buy on dips or sell on rallies,
this indicator was developed to enhance entry accuracy.
Twitter
https://twitter.com/RCIX3Line
Blog
http://bodsor.blog.fc2.com/
Investment Navigator Plus
https://fx-on.com/navi/serial/?id=359
YouTube
https://www.youtube.com/channel/UCL-g5uAlesiWVJEDtWlFvGw
USD/JPY 1-hour chart: example of pullback buying and selling on rallies
※In the charts in this article, for convenience, some circles, straight lines, squares, etc., may be drawn.
Please understand.
