Tamami Torii's RCI Utilization Method: Two Rules for Risk Avoidance [Tamami Torii]

Table of Contents

1. From Minor Technicals to Major?
2. Shining Over Long Time Frames
3. Basic How to Use RCI
4. Can Enter with Low Risk
5. Which FX brokers can implement Mayumi Torii’s RCI method?

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※This article has been re-edited from FX攻略.com August 2015 issue

Profile of Mayumi Torii (Mayumi Torii)

CEO of Pure Edge. After a divorce, while raising children, she started FX to secure an income stream, and her unique investment style has been featured in international media such as the United States, Korea, and Hong Kong. She has authored the series “My Method to Make 1 Million Yen a Month with FX” (4 volumes in total, Diamond) and it has been translated and released in Korea and Taiwan. The latest book is “Even Busy Moms Can Earn Big: My Method to Earn 1 Million Yen a Month with FX” (Diamond).

Official site:Mayumi Torii’s FX Life
twitter:https://twitter.com/mayumitorii

From Minor Technicals to Major?

Hello, I’m Mayumi Torii.

It has been quite a while since I started using RCI. Compared with MACD or Ichimoku, it is a very minor technical, and when people hear that I use RCI, they often ask, “What is that?”

Shining Over Long Time Frames

So, how should RCI be used? RCI (Rank Correlation Coefficient) assigns ranks to dates and prices. The calculation is fairly simple: for the rates (closing prices) within a set period, it looks at how well the time ranks and price ranks align.

For example, if prices rise throughout the period, the RCI approaches +100; if prices fall throughout the period, it approaches -100. Since time is included in the calculation as well as price, it is not very suitable for very short timeframes like 1-minute charts. A somewhat longer timeframe is better to leverage RCI’s strengths.