Can somebody put this in simple language please?
Median Price HL/2 has me totally foxed
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The median is the value for each candle used in the indicator. For example, a 10-period RSI can be calculated using the close value for each candle, or it can be based on the open price for each candle. In this case the value for each candle is (its high value +its low value) divided by 2 - i.e. it is a kind of averaging mechanism that diminishes the impact of extreme highs or lows from spikes in price. It is a smoothing mechanism that numbs out some of the peaks and troughs that could otherwise give you a false signal.
Here are 2 RSI’s superimposed. Both are 10-period. The red is median prices and the blue is close prices. You can see that they are broadly the same but that the median is smoother:
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Thanks a lot Manxx, but how does Mickbuffet apply that to his chart indicators?
I understand the crossover theory etc. and the logic of waiting for RSI to reach a certain point before entering a trade but the rest is way beyond my understanding ATM.
I do appreciate your attempt at helping me. Thanks
RSI can be used in many ways.
A Price Action trader may use it to evaluate price movements at support/resistance levels. (e.g. a return back through the 70 or 30 level)
A Technical Analyst may use it to indicate where a price move is reaching exhaustion level and exit positions (as RSI exceeds 70/80 on the upside or 30/20 on the downside)
or another may use it as a secondary signal confirming, or otherwise, a primary signal such as an MA cross.
another may use it to highlight divergence between high/lows in price and high/lows in the RSI line.
You might like to read through this link to help grasp these and others:
RSI is a very common indicator and there is a mass of info on Internet on ways it can be applied to and associated with other indicators.
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Hello Manxx,
Does the Median price HL/2 is calculated manually or can I find it in the settings of the RSI?
I’m a beginner and testing for the first time the FXpro platform and there is only options of Open, Close, High and Low for the RSI 
Thanks,
I am surprised to hear that since both “typical” (HLC/3) and “Median” (HL/2) are commonly used in many such indicators. But I am not familiar with FXPro platforms (is it CTrader?).
In MT4, for example, there is a dropdown window with all the options (as below), doesn’t FXPro offer the same?
If not, then I guess you will just have to use the “close” option. I don’t think it is practical to try and calculate it manually as you would have to recalculate it after every bar completes!..………
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Hello Manxx,
Yes, I’m using the Ctrader demo account and from the drop down list you are showing the Median Price (HL/2), Typical Price (HLC/3) & Weighted Close (HLCC/4) are not in the Ctrader settings, maybe because it is a demo.
FxPro offer the MT4 too, but I started to test the Ctrader, I think I should download the MT4 too.
Thank you for the support!!
I set up a demo account just to look at this on their Ctrader and, as you say, there are only very limited options with both the web and desktop versions - strange indeed!
Using the close instead of median or typical will not be such a big issue on longer periods and higher timeframes but you will have to be careful to avoid fake crosses on shorter periods and TFs, I think.
How are you intending to use the RSI?
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Hi Manxx,
In this specific case I want to use the RSI to test the HLHB trend catcher system, this is used in a short term period 1 hour-chart or 4 hour-charts.
Currently I’m using the RSI in longer charts periods like 1 day chart to identify reverse of trends when the RSI is in the oversold or overbought zone.
Do you recommend the MT4 platform?
Thanks,
OK! Then maybe you might like to join us in @ria_rose’s thread that only started a few days ago where some of us are doing excactly the same thing! 
https://forums.babypips.com/t/im-trying-out-the-hlhb-system/156573
Great!! I’m going to join
Good! 
Regarding MT4, I think it has both good and bad points. I like its crisp resolution but I dislike its scaling characteristics and limitations. Also , I like to be able to preset an automatic SL and then adjust it afterwards rather than have to always input it with the order or add it afterwards.
I find it clumsy and not very user-friendly, but it works ok and has its own advantages regarding for example EAs, custom indicators, etc.