Laguerre RSI Indicator

Laguerre RSI Indicator

Laguerre RSI indicator for MT4 advanced RSI with best forex trading signals finds Bullish Bearish trends to BUY and SELL.

The Laguerre RSI indicator for MT4 is a modified version of the classic RSI. However, the indicator removes the choppiness of classic RSI and smoothens the oscillator values with very little lag. The indicator provides lesser trading signals than the RSI but has better accuracy in identifying the price trends. However, according to the forex trader’s preferences, the gamma input value of the indicator can be adjusted for more trading signals. Traders should note that increasing gamma increases the signal lag. As a result, forex technical traders can apply sound technical trading strategies and trade both the Bullish and Bearish trading signals.

The indicator works well for new and advanced forex traders. New forex traders can find much better trading signals than the RSI. While advanced traders can use complex trading strategies. The indicator works well in all intraday time frame charts as well as the daily, weekly, and monthly price charts.

Laguerre RSI Indicator For MT4 Trading Signals

The above GBPUSD M30 price chart shows the Laguerre RSI indicator for MT4 in action. The indicator is an oscillator and plots the values in a separate indicator window in Purple. Unlike the classic RSI, the indicator is plotted with values between 0 and 1. Oscillator values above 0.15 indicate a Bullish signal and below 0.75 indicates a Bearish price trend.

If the oscillator values rise above 0.15 then it denotes the beginning of a Bullish market. So, forex traders can place a BUY trade with a stop loss below the previous swing low. On the other hand, the best point to book profits is to wait for the oscillator values to reach 0.75 or higher. However, technical traders can book profits with a good risk-reward ratio or at the opposite trading signal.

Similarly, once the oscillator values drop below 0.75 it indicates the start of a Bearish price trend. So, forex traders can place a SELL trade with a stop loss above the previous swing high. Similarly, the best take profit is to ride the trend by waiting for the oscillator to reach the opposite end.

The indicator is an oscillator and will stay above 0.75 for a longer period during prolonged Bullish conditions. Oppositely, the oscillator values may stay well below 0.15 for a longer period during bearish price trends. So technical traders must confirm the trading signals with price action or other technical indicators before applying the trading strategy.

The indicator can be used for Top- Down technical trading strategies. As it is obvious to identify the trend in higher time frame price charts and use the lower time frame price charts for identifying the best entry point.

Conclusion

The Laguerre RSI indicator for MT4 is best suitable for RSI traders. Forex technical traders will find much better forex trading signals, though the number of trading signals may be far low in comparison to the classic RSI indicator. Additionally, forex traders can download the indicator for free and install it easily.