The traditional Laguerre RSI indicator is a popular forex oscillator indicator that tells you when the market is overbought or oversold.
The MTF version of the Laguerre RSI indicator enables you to select and use data from other time frames.
For instance, you can choose to use data from the 1-hour chart while working with the 5-minute chart.
Furthermore, the MTF Laguerre indicator paints oversold and overbought dots in a separated trading window.
- Red dots appear on the chart when the oscillator falls below 0.15 from above. This is an oversold signal.
- Green dots appear on the chart when the oscillator rises above 0.75 from below. This is an overbought signal.
For better performance, it’s recommended to use the Laguerre MTF indicator together with a trend-following technical indicator.
For example, use together with an SMA, EMA or Bollinger bands.
Trade signals from the MTF Laguerre indicator in the direction of the underlying trend.
- When the trend is upward, trade the oversold red dots area.
- When the trend is downward, trade the overbought green dots area.
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
The EUR/USD 1-Hour chart below displays the MTF Laguerre Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the MTF Laguerre MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open a new buy trade position when the Laguerre MTF oscillator rises back above 0.15 from below.
Place a stop loss below short-term support or use your own preferred SL method.
Sell Signal: Open a new sell trade position when the Laguerre MTF oscillator falls back below 0.75 from above.
Place a stop loss above short-term resistance or use your own preferred SL method.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (gamma, price type, smooth, show levels, show crossings, time frame, alerts on) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Copy and paste the LaguerreRSI Alert.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)