Laguerre Filters for Trend Smoothing and Oscillator Signals

Summary

The document describes a Laguerre filter and oscillator based on John Ehlers’s July 2025 article. The filter replaces the exponential moving average used in the first Laguerre term with an UltimateSmoother, then combines delayed terms using weighted coefficients. This is intended to preserve smoothness while reducing lag. Users adjust the smoother period and gamma, which trades faster reaction to rapid moves against sensitivity to longer trends.

The companion oscillator normalizes the difference between the smoother and a following Laguerre term by the root mean square of that difference over a chosen window. The script plots the filter on price and the oscillator in a separate pane. The accompanying description suggests using filter crossings or crossings between filters of different orders as possible buy and sell cues, and describes the oscillator as useful for swing or mean-reversion analysis. The document provides formulas and implementation settings, but no performance tests or evidence that these signals are profitable; parameter choices and market conditions may affect their behavior.

Key ideas

• The filter replaces the first exponential moving average term in a Laguerre structure with an UltimateSmoother.
• Gamma controls responsiveness, with lower values favoring rapid changes and higher values favoring trends.
• The oscillator scales the difference between two filter terms by its rolling root mean square.
• Filter crossings and oscillator behavior are proposed as trading cues, but the document reports no strategy performance evidence.

Tags

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