The Laguerre RSI Metatrader 4 forex indicator is a very popular trend oscillator used in many strategies and systems.
It was authored by John Ehlers as a technique he used to “warp” the time coefficients of a regular EMA filter, thereby resulting in a quicker response.
The Laguerre RSI indicator is known to behave in the same way as the classic RSI.
In addition, the Laguerre RSI indicator gets traded in a similar fashion as the RSI.
Buying is generally advised when the indicator’s value falls below a certain threshold, and exiting the trade when it surges above a threshold.
The medium purple line of the Laguerre RSI indicator runs between marked zero lower limit and “1” upper limit.
The EUR/USD M30 chart below displays the Laguerre RSI Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the medium purple line of the Laguerre RSI Metatrader 4 forex indicator breaks back above the 0.15 level from below.
Sell Signal: Go short when the medium purple line of the Laguerre RSI Metatrader 4 forex indicator dips back below the 0.75 level from above.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the medium purple line of the Laguerre RSI indicator dips below the 0.75 level.
Exit sell trade: Close all sell orders if while a bearish trend is running, the medium purple line of the Laguerre RSI indicator surges above the 0.15 level.
Tips: The Laguerre RSI indicator is a trend oscillator indicator that can be used to confirm signals to enter the market, as well as exit it.
You’ll also stand to enjoy fewer false positives on this indicator than the traditional RSI.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (gamma), 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-rsi.ex4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)