Trend strength indicator based on the Laguerre adaptive filter.
It was created by John Ehlers - the expert who applied digital signals processing methods to futures trading. Technical Papers
section of his web site contains plenty of examples of the method use.
Laguerre indicator shows the overbought/oversold states of the market. It is recommended to buy when a price goes beyond the upper level and sell when it goes below the lower level. Center line breakout is also quite a strong signal for opening positions. Leaving overbought/oversold areas is yet another way to get trading signals using the indicator.
Author: Nikolay Kositsin
This is the one (of many) way how to use this indicator.
Laguerre Scalping Trading System
Please find template for this system. Do not forget to download Laguerre indicator (other indicators already exist in Metatrader 5).
You will get chart like that (you can see confirmed buy entry on the image) :