ATR Adaptive Smoothed Laguerre RSI - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources

The Laguerre RSI indicator created by John F. Ehlers is described in his book "Cybernetic Analysis of Stocks and Futures".

This version:

An alternative to using a fixed period for Laguerre RSI calculations is to use ATR (Average True Range) to adjust the calculation period. It makes the RSI more responsive during certain periods (periods of high volatility) and the order cycles smoother (periods of low volatility). This version also adds an option with smoothed values. The smoothing method used is to add a minimum lag (see the "big picture" example), which does not affect the results much, but helps to produce fewer signals and therefore fewer false signals.

You can use this (in conjunction with the adjustable level) for signals when the color of the Laguerre RSI changes.

"Big picture" example:

Comparing the non-smoothed (top) and the case that would normally produce significant lag (since the smoothing period used in the example is 15), it can be seen that the lag is perfectly acceptable.

Attachment download

📎 atr_adaptive_smooth_laguerre_rsi.mq5 (13.5 KB)

Source: MQL5 #22730