Sunday, April 29, 2012

MT4 indicator (Laguerre_RSI.mq4)

Laguerre RSI indicator settings

Gamma: 0.85
Count Bars: 9500
Default parameters: Fixed minimum -0.05 Fixed Maximum 1.05
Default Levels: 0.85, 0.45 and 0.15
Laguerre Filter line setting Gamma: 0.85

How to trade with Laguerre RSI indicator

Buy when Laguerre RSI crosses upwards above 0.15.

Sell when Laguerre RSI crosses down below 0.85.

While indicator runs flat above 0.85 level, it means that an uptrend is strong.

While indicator runs flat below 0.15 level, it means that a downtrend is strong.

How to use Laguerre Filter Line

An additional Forex indicator — Laguerre Filter line — is drawn directly over the charts and looks like a moving average. Laguerre Filter line filters Laguerre RSI signals.

When Laguerre RSI tells to go Long (buy), Forex traders would enter only if price is above Laguerre Filter line. Opposite true for Sell signals: when Laguerre RSI signals to Short, price must be below Laguerre Filter line in order for a signal to be valid.

Laguerre Filter line doesn't filter all false signals, though.

Forex trades may choose to play with Laguerre RSI settings in order to make Laguerre indicator more or less sensitive. Settings apply to Gamma parameters. Common settings are:

Gamma 0.85
Gamma 0.7
Gamma 0.55

When using Laguerre Filter line together with Laguerre RSI in Forex, make sure they both have the same Gamma settings.

Forex MT4 indicator Laguerre Download indicator: Laguerre.mq4
Forex MT4 indicator Laguerre RSI Download indicator: Laguerre_RSI.mq4
Forex MT4 indicator Laguerre Filter Download indicator: LaguerreFilter.mq4






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