RSI Laguerre Indicator
The technical indicator created by John F. Ehlers is a modified version of the Relative Strength Index (RSI). For the first time this indicator was published by John F. Ehlers in Cybernetic Analysis For Stocks And Futures.
Our team has over 7,000,000 traders!
Every day we work together to improve trading. We get high results and move forward.
Recognition by millions of traders all over the world is the best appreciation of our work! You made your choice and we will do everything it takes to meet your expectations!
We are a great team together!
InstaSpot. Proud to work for you!
Actor, UFC 6 tournament champion and a true hero!
The man who made himself. The man that goes our way.
The secret behind Taktarov's success is constant movement towards the goal.
Reveal all the sides of your talent!
Discover, try, fail - but never stop!
InstaSpot. Your success story starts here!
The technical indicator created by John F. Ehlers is a modified version of the Relative Strength Index (RSI). For the first time this indicator was published by John F. Ehlers in Cybernetic Analysis For Stocks And Futures.
L0:=((1-g)*C) + (g*PREV);
L1:=(-g*L0) + Ref(L0,-1) + (g*PREV);
L2:=(-g*L1) + Ref(L1,-1) + (g*PREV);
L3:=(-g*L2) + Ref(L2,-1) + (g*PREV);
cu:= If(L0 > L1, L0-L1,0) + If(L1 > L2, L1-L2,0) + If(L2 > L3, L2-L3,0);
cd:= If(L0 < L1, L1-L0,0) + If(L1 < L2, L2-L1,0) + If(L2 < L3, L3-L2,0).
As in case of many other oscillators, the main method of this indicator use is opening of buy orders after the level of indicator crosses above the level of 0.15 and opening of sell orders after the indicator crosses below the level of 0.75.
The major parameter of the RSI Laguerre indicator for MetaTrader is the factor gamma which equals 0.7 by default. It is important to note when the value which is less than this level (for instance, 0.5) is used, the indicator suggests rather aggressive trading with big number of trading signals, which nagatively influences the outcomes. High values of the indicator’s factor (more than 0.85) are unadvisable as overvaluation of the parameter may lead to delays in the work of the indicator.
The relevant distinguishing characteristic of the technical indicator RSI Laguerre is the situation when the indicator line takes minimal or maximal value moving strictly in horizontal way; it means powerful directed movement. Thus, if the indicator equals 1 and moves horizontally, strong trend movement, which is pointed up, prevails on the market. If the indicator equals zero and moves horizontally, then one should open sell deals in the developing downward movement.
gamma = 0.7
