John Ehlers explained the Laguerre filter long time ago in the “Time Warp – without Space Travel” document.
The “gamma” parameter is the reason why the Laguerre filter is not widely used because traders do not extensively grasp what it does.
This version eliminates the Gamma parameter and only uses the period, a parameter that the majority of traders are used to deal with.
The MT5 Laguerre filter indicator without the gamma component produces very smooth results even when deployed for very short periods.
It’s ok to use it for scalping, day trading and swing trading purposes.
The USD/CHF M30 chart below displays the Laguerre filter Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the line of the Laguerre filter turns medium sea green and is aligned somewhat below price bars.
Sell Signal: Go short when the line of the Laguerre filter turns crimson and is aligned somewhat above price bars.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the line of the Laguerre filter indicator turns crimson.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the line of the Laguerre filter indicator turns medium sea green.
Tips: The Laguerre forex indicator is used in a lot of forex strategies and trading systems.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (Period, Price), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the Laguerre filter – ng.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)