【RCI3 Main Line + BODSOR】Pound-Dollar 5-minute chart Retracement Sell Signal 20181112
※BODSOR is an indicator developed to improve the entry accuracy 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 are aligned in the same direction, price movement tends to be larger in that direction.”
This is the case.
When RCI26 and RCI52 are rising (falling) and RCI9 is falling (rising),
if RCI9 reverses,“All three RCIs align in the same direction.”This is what happens.
Therefore, detecting when RCI9 will reverse is extremely important.
(Case by case, simply waiting for RCI9 reversal to be confirmed often results in a large lag.)
Hence, designed to detect as early as possible the moment when the momentum of RCI9 to rise (fall) weakens
, BODSOR was developed.
The figure below is the 5-minute chart of GBP/USD.
GBP/USD 5-minute chart (November 12, 2018)
Top: BODSOR
Bottom: RCI 3-line (Red: RCI9, Light blue: RCI26, Yellow: RCI52)
Of the RCI3 lines, only RCI9 is clearly rising.
If RCI9 reverses downward, all three RCIs may move downward together.
In other words, price may also fall strongly.
In this situationBODSOR’s pullback sell signal (yellow arrow) lights up.
From right after the signal lights, the price is clearly falling.
To increase the entry accuracy when buying on dips or selling on rallies using the RCI3 lines
, this indicator was developed.
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
USD/JPY 1-hour chart: Example of dip-buy and rally-sell signals
※In this article’s charts, for convenience of explanation, circles, straight lines, and rectangles may be drawn
as needed. Please understand.
