ATR-Adaptive Laguerre Filter with Dynamic Signal Levels

Summary

This indicator smooths a price series with a four-stage Laguerre filter and adjusts its Gamma parameter using recent average true range. The stated goal is to make the smoothing respond to current market movement. It then builds upper and lower adaptive levels around the filtered value; the level period can be set separately, or left tied to the filter period. Optional color filling highlights when the filter moves above or below those levels.

The description provides implementation settings and the calculation structure, but no chart examples, backtest, or evidence that the crossings predict profitable trades. The levels are presented as signal filters, not as a fully specified entry, exit, or risk-management system. Users would need to assess the indicator on their own instruments and timeframes, including the effects of parameter choices and trading costs.

Key ideas

• Recent average true range is used to adapt the Laguerre filter’s Gamma parameter.
• The filtered price is compared with upper and lower levels that update dynamically.
• The level calculation can use a configurable period or follow the filter period.
• Optional color filling marks when the filtered value is above or below the levels.
• The document provides no performance testing or complete trading rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.