【RCI3 main line + BODSOR】EUR/USD 15-minute pullback buy signal 20181106

※BODSOR is an indicator developed to improve the entry precision when making dip-buying or pullback-sell decisions using three-line RCI (RCI3) lines.




RCI Three-Line and BODSOR usage examples

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

“When all three RCIs align 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 align in the same direction.” This is the result.

Therefore, detecting when RCI9 will reverse is extremely important.

(Case by case, simply waiting for the RCI9 reversal to be confirmed often leads to significant delays.)


Hence, BODSOR was developed to detect as early as possible the timing when the momentum of RCI9 moving upward (or downward) weakens.



The figure below shows the EUR/USD 15-minute chart.


EUR/USD 15-minute chart (November 6, 2018)

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


Dip-buy signal (pink arrow enclosed in a circle)

Among the RCI3 lines, only RCI9 is clearly declining.
If RCI9 reverses and rises, all three RCIs may rise together.
In other words, price could rise strongly.

In such a situation,BODSOR dip-buy signal (pink arrow) lights up.

From right after the signal appears, the price is shown to be rising smoothly.


Using RCI3 lines to make dip-buy or pullback-sell entries
was developed to increase 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 dip-buy and pullback-sell signals



※In the charts in this article, for convenience of explanation, circles, straight lines, squares, and other marks may have been added.
Please understand.