RCI 3Lines
- Indicatori
- Versione: 1.0
- Attivazioni: 5
RCI 3Lines — Rank Correlation Index with Three Periods
Overview
RCI 3Lines is a powerful momentum and trend indicator based on the Rank Correlation Index (RCI), a Japanese technical analysis tool widely used in Asian markets. It plots three RCI lines simultaneously — Short, Middle, and Long — allowing traders to identify trend direction, momentum shifts, and overbought/oversold conditions across multiple timeframes in a single window.
Unlike RSI or Stochastic, RCI measures the correlation between time rank and price rank using Spearman's Rank Correlation Coefficient. This makes it highly sensitive to trend acceleration and deceleration, while remaining smooth enough to filter market noise.
How RCI Works
RCI is calculated using Spearman's formula:
RCI = { 1 - (6 × Σd²) / (n × (n² - 1)) } × 100
Where:
- n = period length
- d = difference between time rank and price rank
- Time rank: most recent bar = rank 1, oldest bar = rank n
- Price rank: highest price = rank 1, lowest price = rank n
The result oscillates between -100 and +100, with 0 as the centerline.
Three Lines — Three Perspectives
| Line | Default Period | Purpose |
|---|---|---|
| Short | 10 | Fast signal — early trend detection |
| Middle | 30 | Medium signal — trend confirmation |
| Long | 50 | Slow signal — overall trend direction |
Reading all three together gives a complete picture of market momentum:
- All three above 0 → Strong bullish trend
- All three below 0 → Strong bearish trend
- Short crosses above Middle → Early bullish signal
- Short crosses below Middle → Early bearish signal
- Divergence between Short and Long → Trend weakening
Key Levels
| Level | Meaning |
|---|---|
| +80 | Overbought zone — consider taking profits on longs |
| 0 | Centerline — trend neutral zone |
| -80 | Oversold zone — consider taking profits on shorts |
When the Short RCI exits the overbought (+80) or oversold (-80) zone, it often signals a potential reversal.
Trading Signals
Trend Following
- Enter long when Short and Middle RCI cross above 0 while Long RCI is rising
- Enter short when Short and Middle RCI cross below 0 while Long RCI is falling
Reversal
- Look for Short RCI reversing from +80/-80 zone
- Strongest signals occur when all three lines reverse simultaneously from extreme levels
Divergence
- If price makes a new high but Short RCI makes a lower high → bearish divergence
- If price makes a new low but Short RCI makes a higher low → bullish divergence
Input Parameters
| Parameter | Default | Description |
|---|---|---|
| Short Period | 10 | Period for the fast RCI line |
| Middle Period | 30 | Period for the medium RCI line |
| Long Period | 50 | Period for the slow RCI line |
| Price | Close | Applied price source |
| Upper Band | +80 | Overbought level |
| Lower Band | -80 | Oversold level |
| Show Levels | true | Show/hide horizontal levels |
| Short Color | Blue | Color for Short RCI line |
| Middle Color | Red | Color for Middle RCI line |
| Long Color | Green | Color for Long RCI line |
Recommended Settings
| Market Condition | Short | Middle | Long |
|---|---|---|---|
| Scalping (M1-M5) | 5 | 14 | 26 |
| Day Trading (M15-H1) | 10 | 30 | 50 |
| Swing Trading (H4-D1) | 9 | 26 | 52 |
Comparison with RSI
| Feature | RSI | RCI |
|---|---|---|
| Calculation basis | Price change magnitude | Price rank vs time rank |
| Sensitivity | Medium | High |
| Smoothness | Smooth | More responsive |
| Range | 0 to 100 | -100 to +100 |
| Centerline | 50 | 0 |
| Origin | Western TA | Japanese TA |
Why Use RCI 3Lines?
- ✅ Japanese market proven — widely used by professional Japanese traders
- ✅ Three timeframe view — see short, medium, and long-term momentum at once
- ✅ Clear centerline — 0 as the neutral zone is intuitive
- ✅ No repainting — all values are calculated on closed bars
- ✅ Fully customizable — periods, colors, and levels adjustable
- ✅ Works on all symbols and timeframes — Forex, indices, commodities, crypto
Installation
- Purchase and download the indicator
- The .ex5 file will appear in Navigator → Indicators
- Drag and drop onto any chart
- Adjust input parameters as needed
Notes
- RCI is most effective when used with price action or trend-following tools such as Moving Averages
- During strong trending markets, the Long RCI may stay near +100 or -100 for extended periods — this is normal behavior
- For best results, combine with support/resistance levels
For questions or support, please use the MQL5 comments section.
