The Adaptive Laguerre RSI indicator is a small trading system based on several forex indicators. Their general calculations are aimed at determining the current trend, namely its direction and strength, as well as trading during this period. The indicator is presented in the lower window of the price chart in the form of a solid line, which, under certain market conditions, changes color and direction. Taking into account the values of the indicator line, the current trend is determined, and at the same time the trade that opens during this period.
The Adaptive Laguerre RSI indicator is suitable for trading on any timeframe using any currency pairs.
There are several sections in the settings of the Adaptive Laguerre RSI indicator that are responsible for its general functioning. The Input parameters section is responsible for its technical work, the Colors section is responsible for visualization parameters, and the Levels section is responsible for adding signal levels to the indicator window.
-LookBack - indicator calculation period. The default value is 32.
-Median - calculation period for the middle line of the indicator. The default value is 16.
-Price - type of the price to which the indicator calculations are applied. The default value is 4.
-Smooth - period of smoothing the indicator values. The default value is 10.0.
To open a certain trade using the Adaptive Laguerre RSI indicator, one should take into account the direction and strength of the current trend, which in turn are determined taking into account the direction and color of its line. If the indicator determines an upward trend, long positions are opened, if the trend is downward, short positions are opened. When the current trend changes, the trades should be closed.
Signal for Buy trades:
- The indicator line has a color with a growth value and goes up.
A buy trade, due to the presence of an uptrend, can be opened immediately upon receipt of such conditions on a signal candle. When the current trend changes, namely, when the opposite conditions are received, the trade should be closed and the opening of new ones should be considered.
Signal for Sell trades:
- The indicator line moves from top to bottom and has a color with a falling value.
Upon receipt of such conditions, a sell trade can be opened on the signal candle. At this moment, a downward turn is determined in the market. At the moment of its change, namely, upon receipt of reverse conditions from the indicator, the trade should be closed. This allows us to consider opening a new trade.
The Adaptive Laguerre RSI indicator is very effective, as its calculations are based on very accurate forex indicators. To improve the quality of trading, it is recommended to use the indicator with additional indicators, filters and advisers.