Laguerre Volume Indicator

Laguerre Volume Indicator

The Laguerre Volume indicator for MT4 is a custom trading tool that identifies potential overbought/oversold zones based on the volume in the market.

The Laguerre Volume indicator for MetaTrader is a custom trading tool that identifies potential overbought/oversold zones based on the volume in the market. Its algorithms detect price exhaustion (overbought/oversold) levels when a financial asset loses volume around a support/resistance zone.

Furthermore, a price above the 0.8 and 0.2 levels is designated as overbought and oversold, respectively. Therefore, a potential buy signal is depicted when the indicator’s line crosses above the 0.2 level, while a sell is depicted when the line crosses below the 0.8 zone.

So, the indicator is a suitable technical tool that would help you to easily identify a potential trend reversal zone without less hassle. Besides, it is chart-friendly and easy to use, which makes it suited for different classes of forex traders novice/intermediate and advanced).

Moreover, the Laguerre Volume indicator is not recommended to be used as a stand-alone tool to make trading decisions. You may use it in synergy with price action or any technical indicator as a confluence before opening a buy/sell position.

How to Trade With the Laguerre Volume Indicator

The above image depicts the action of the Laguerre Volume indicator on the EURUSD currency pair in the M30 timeframe. It shows how a sell setup/entry was identified using the indicator and price action.

From the image, you can see that the price has gotten to an overbought zone of the indicator, which suggests a potential trend reversal to the downside. Furthermore, the price reacted to the supply zone, which also suggests a potential drop to the downside. Finally, the indicator’s line crosses below the 0.8 level and the price also printed a bearish candlestick, which confirms the bearish move, thus, the sell entry.

Conclusion
The Laguerre Volume indicator for MT4 tracks the depletion of the market volume around a support/resistance level to signal an overbought/oversold zone. What’s more, it is recommended for scalpers and day/intraday traders. Finally, it is free to download.