Laguerre Line Average
Laguerre Line Average is a widely known indicator. John Ehlers described this price smoothing algorithm in his book "Cybernetic Analysis for Stocks and Futures". Excellent smoothing using very short filters allows to create very good indicators on very short-term data. Using short-term data means that we can make the indicators more sensitive to the price changes, this helps to reduce the reaction time for opening positions, and the decrease in delay has an according positive effect on the profitability of your trading.
- gamma - smoothing coefficient
- Shift - shift
- Applied_Price - applied price
- Filters Qty - the number of filters from 1 to 10, the more filters, the greater the smoothing.
The Laguerre indicator is a good indicator for trend trading. It shows market cycles in the selected chart period better than most of the standard indicators of the MT4 platform kit. This indicator perfectly shows the start and end of micro-trends. it is by no means a self-sufficient trading system by itself, but combined with other indicators and technical analysis methods, the Laguerre is able to show good results.