Laguerre RSI with Filtering and Configurable Signal Colors

Summary

This indicator extends the standard relative strength index with a Laguerre filter for its signal line and additional smoothing of the Laguerre RSI. The description attributes the underlying indicator approach to John Ehlers and notes its introduction in his book on cybernetic analysis for stocks and futures.

Users can choose how the display changes color: when the indicator crosses no-trade zones or outer levels, when its slope changes, or when it crosses the signal line. The selected color change can then serve as a trading signal, depending on the trader’s style. The document gives no parameter values, entry or exit rules, chart examples, performance evidence, or guidance for choosing among the modes. It therefore describes indicator features rather than a tested strategy.

Key ideas

• The indicator smooths Laguerre RSI values and uses a Laguerre filter for the signal line.
• Color changes can mark crossings of no-trade zones or outer levels.
• Color changes can also reflect the indicator’s slope or a signal-line crossing.
• The description leaves signal selection to the trader and provides no performance evidence.

Tags

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