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The Laguerre indicator was created to search for signals to open or close positions. In its calculations, the indicator uses exclusively its own calculations , not based on other forex indicators. It is presented in the lower window of the price chart as a weighted line that periodically crosses certain levels, after crossing which a signal is formed.
The indicator works perfectly on any timeframe, with any currency pair.
Input parameters
To perform certain calculations, it is enough for the Laguerre indicator to have only two parameters in the settings, in addition to visual ones and those responsible for adding levels.
- -Gamma - indicator parameter responsible for calculating line levels. The higher the value, the smoother the line will be. The default value is 0.7.
- -CountBars - the number of bars to which the indicator calculation will be applied. It is recommended to choose a large value. The default value is 950.
Indicator signals
The Laguerre indicator window contains levels with values of 0.2, 0.5 and 0.8, as well as a weighted line that, under certain conditions, will break through these levels. If the line crosses one of these three levels in a certain direction, it will be an indicator signal for trades.
Signal for Buy trades:
- -The indicator line crosses the level 0.2 from the bottom up and moves upwards to the level 0.8.
After the formation of this condition, a long position is opened on a certain candle. A buy position should be closed if, after moving up, the line crosses the level of 0.5 and goes down.
Signal for Sell trades:
- - The weighted line of the indicator after crossing the level 0.8 from top to bottom moves to the level 0.2.
In the presence of such a condition, a signal is created to open a short position, which should be closed if the indicator line, after crossing the level 0.5 from top to bottom, changes its direction and moves up.
Conclusion
The Laguerre indicator is a universal type of the algorithm, created for trading during a trend movement. The indicator can be used both as a main tool and as an additional one in strategies, since Laguerre is more effective with additional indicators. After a thorough study of the indicator on a demo account trade can be opened on a real deposit.
