Laguerre RSI: Period-Based Tuning and Smoothing

Summary

The document introduces the Laguerre RSI, an indicator developed by John Ehlers and described as a faster, less noisy alternative to conventional RSI. It uses a four-bar construction, while its responsiveness is controlled by a gamma parameter: lower values make it react more quickly but can increase whipsaws, and higher values make it more conservative.

This variant replaces gamma with a period setting that may be fractional and adds a Laguerre filter to smooth the RSI. Setting the filter period to one or less disables that smoothing. The suggested use is to combine adjustable threshold levels with signals from changes in the indicator’s color. The document provides no formula, parameter recommendations, backtest, or evidence that the indicator produces profitable signals, so it describes implementation and interpretation rather than a validated strategy.

Key ideas

• Laguerre RSI is presented as a fast oscillator built from four bars.
• Lower gamma settings increase responsiveness and can also increase whipsaws.
• This variant uses a potentially fractional period setting instead of gamma.
• An added Laguerre filter smooths the oscillator and can be disabled with a filter period of one or less.
• The proposed signal uses color changes together with adjustable threshold levels.

Tags

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