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I’ve got a quick question on the RSI indictor. So I’ve been studying the markets for a few years and have recently worked with a programmer to build a custom indicator. The indicator is more or less an RSI. It uses the same formula. But it takes 28 pairs and the RSI found from the base and the RSI from the quote currency’s and adds the RSI values from each matching currency together and divides them out by 7. To essentially split the currency pairs apart and make them become singles. So your getting a single RSI for each currency in this case 8 currency’s. So for example if you have the EURUSD. The EUR is in 80 territory and the USD is in the 20 territory this indicates that the pair will reverse the current direction and you’ll sell the EUR and buy the USD in this example. So now my issue is. I’ll put the indicator on a small time frame such as 5-15min candles and I’ll use 2-3 days worth of candles (I do small timeframe candles to basically smooth the RSI and have it update or refresh more so you don’t have big jumps but nice gradual ones.) when using that many candles tho it causes the indicator to never really leave the 50 mark it will go to like 46 or 47 and 63 at the highest. Now why is this? Because if I put the indictor on the same data but on daily bars and still 2-3 days it’s spastic and all over the place. What causes this disruption?
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