The Laguerre RSI with Laguerre filter Metatrader 5 forex indicator is a mix of both the Languerre filter and Languerre RSI.
The indicator essentially determines market cycles.
There are two lines within the indicator window, the dim gray dotted line (Languerre filter signal) and the pale violet red (languerre RSI).
The indicator uses the Languerre filter to deliver a “time warp” that delays low frequency constituents more than the high frequency constituents, meaning much smoother filters can be formed using fewer market data.
The indicator flattens out once it enters an extreme region i.e. above the 0.85 level and below the 0.15 level.
What’s more, the flattening of the indicator line is billed to continue until the market is ready to reverse.
This is also an indication that the current trend is strong and the market will continue to move in the path of the Laguerre RSI with Laguerre filter indicator.
The EUR/USD H1 chart below displays the Laguerre RSI with Laguerre filter Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the ascending dim gray line of the Laguerre RSI with Laguerre filter Metatrader 5 forex indicator crosses the pale violet red line in a bottom up manner around the 0.15 region.
Sell Signal: Go short when the descending dim gray line of the Laguerre RSI with Laguerre filter Metatrader 5 forex indicator intersects the pale violet line in a top downward fashion around the 0.85 region.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the lines of the Laguerre RSI with Laguerre filter indicator intersects.
Exit sell trade: Close all sell orders if while a bearish trend is running, the lines of the Laguerre RSI with Laguerre filter indicator crosses.
Tips: Once the Laguerre RSI with Laguerre filter indicator lines enter the 0.85 or 0.15 regions, it is believed that price is overbought or oversold respectively – this is a beneficial feature for trend trading.
Laguerre RSI works for scalping, day trading and swing trading purposes.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable [Laguerre RSI gamma, Price, Laguerre RSI smooth gamma, Laguerre RSI smooth speed (min 0, max 6), Level up, Level down, Display no trade zone?, No trade zone up, No trade zone down], Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: oscillator | cycles
Copy and paste the Laguerre_RSI_with_Laguerre_filter.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)