Laguerre_RSI Forex Indicator is an alteration of the relative strength indicator (RSI). It eliminates the effects of delay and whipsaws. It achieves this by using a filter and incorporating some more changes to the usual relative strength indicator. Its data calculations uses the previous recent four bars.
This is an indicator that a trader can use in technical trading. It is more responsive and has lesser noise as compared to the RSI indicator.
Features of Laguerre_RSI
Laguerre_RSI Indicator combines the use of two parameters. These parameters are the array and the gamma. The array is the series of close time that is used in calculating the indicator (drawing the outline of the indicator). On the other hand the gamma is a filter that is used in conjunction with the array for the indicator to be effective.
The gamma is actually used as a price damping factor which if a better aggressive signal is desired it is lowered accordingly or on the other hand raised in order to encourage more antagonistic signals. The gamma input’s scale has a range of -0.5 to 1.05.
Fig.1. main features of Laguerre_RSI
Interpreting the Laguerre_RSI indicator in connection with the market prices.
When using the Laguerre_RSI what is most important is looking at the RSI position in respect to the gamma levels (0, 0.15, 0.45, 0.85, and 1). The most important levels to check on are the 0.15 and the o.85.
When the Laguerre_RSI indicator starts to rise and crosses the o.15 level then a trader is 90% guaranteed that there is a possible uptrend. If the trend continues and the indicator gets flats at a level above 0.85, then you get an assurance that the current uptrend is persistent.
When the Laguerre_RSI indicator starts to drop and crosses the o.85 level then a trader is 50% guaranteed that there is a possible downtrend. That is if the previous uptrend had caused the indicator to cross the 0.85 level. If the trend continues and the indicator gets flats at a level below the 0.15, then you get an assurance that the current downtrend is persistent.
Fig.2. interprating the market using laguerre_RSI
Therefore you have to practice a lot of patience before opening a trade.in so doing you have to also consider the Laguerre Filter line that is plotted directly on the chart like a moving average.
Trading using Laguerre_RSI
Buy orders: place a buy order when during an uptrend the indicator crosses the 0.15 level. But you should also ensure that by the time you are opening the position, the price (bars on the chart) is above Laguerre Filter line.
Fig.3. placing a sell order
Sell order: place a sell order when during a downtrend the indicator crosses the 0.85 level. But you should also ensure that by the time you are opening the position, the price (bars on the chart) is below Laguerre Filter line.
Then when trading it advisable to ensure that you have a specific target of pips you are targeting for profit making and if the market misbehaves for stop loss. Hence use stop levels for the sake of risk management. Open demo account to test this indicator.
Forex Indicators Download – Instructions
Laguerre_RSI Forex Indicator is a Metatrader 4 (MT4) indicator and the essence of the forex indicator is to transform the accumulated history data.
Laguerre_RSI Forex Indicator provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly.
Do the same with template file (.tpl), if there is any, at File/Open Data Folder/templates.
How to install Laguerre_RSI Forex Indicator.mq4?
- Download Laguerre_RSI Forex Indicator.mq4
- Copy Laguerre_RSI Forex Indicator.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your indicator
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader Client
- Right click on Laguerre_RSI Forex Indicator.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator Laguerre_RSI Forex Indicator.mq4 is available on your Chart
How to remove Laguerre_RSI Forex Indicator.mq4 from your Metatrader 4 Chart?
- Select the Chart where is the Indicator running in your Metatrader Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
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