【RCI3 Main Line + BODSOR】Pound-Dollar 5-minute chart Retracement Sell Signal 20181114

※BODSOR is an indicator developed to improve the entry precision when buying on dips or selling on rallies using three-line RCI (RCI3).




and usage examples

One of the characteristics 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 larger.”

This is the case.

If RCI26 and RCI52 are rising (falling) and RCI9 is falling (rising),
when RCI9 reverses“the three RCIs align in the same direction”, meaning.

Therefore, detecting when RCI9 reverses is extremely important.

(Case by case, but simply waiting for a definitive reversal of RCI9 often results in significant delay.)


Hence, BODSOR was developed to detect as early as possible the moment when the momentum of rising (falling) RCI9 weakens.
)


The figure below is a 5-minute chart of GBP/USD.

GBP/USD 5-minute chart (November 14, 2018)

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

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

In this situation,BODSOR’s sell-on-rally signal (yellow arrows) lights up.

Immediately after the signal, seven bearish candles appear in a row, and the price continues to
decline.



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


Examples of Buy on Dips and Sell on Rallies on USD/JPY 1-hour chart



※In the charts within this article, for convenience of explanation, circles, lines, and boxes may be drawn.
Please note this.