Laguerre RSI Indicator

The Laguerre RSI Indicator is a modification of the well-known relative strength indicator or RSI.
John F. Ehlers, the famous trader who created the Laguerre RSI, tried to avoid whipsaws (noise) and lag produced by smoothing technical indicators by applying a filter and some changes to the original relative strength indicator.

The result is a technical indicator that is more responsive and has much less noise than the original RSI indicator.

The Laguerre RSI Indicator has two parameters:
Array: This is the time series used to calculate this indicator. It is usually the close time series
Gamma: This is a filter setting

Example:
a = LRSI(close, 0.5);
plot(a, "Laguerre RSI", colorBlue, ChartLine, StyleSymbolNone);
plot(0.85, "", colorRed, ChartLine, StyleSymbolNone);
plot(0.15, "", colorGreen, ChartLine, StyleSymbolNone);

// Plots the Laguerre RSI indicator and the high/low levels


How to trade the Laguerre RSI:
Buy when the Laguerre RSI crosses above 0.15 (upwards)
Sell and Short when the Laguerre RSI crosses below 0.85 (downwards)

More information:
The uptrend is considered strong if the Laguerre RSI stays flat above the 0.85 level.
The downtrend is considered strong if the Laguerre RSI stays flat below the 0.15 level.

Technical Analysis

• Close Price Above Cursor
• Set the First Trading Bar Values to Not a Number
• Slope of Support and Resistance Lines
• Advance Decline Line
• Highest close
• Accumulation Swing Index (To measure long term trends)
• Technical Analysis Continuation Pattern: Descending Triangle Indicator
• RSI Conservative Screen
• Entry Price and Exit Price in Trading System Report
• Price and Volume Trend
• More trading objects...

Fundamental Analysis

• Analyst Days Since Last Rating
• Federal funds effective rate
• Cash ON Hand for US stocks
• Inventory to Sales Ratio - I/S Ratio
• Analyst downgrades & upgrades
• Industrial Production Index - IPI - Historical data
• Ivey PMI Index - Canada
• Stock Picks from Wikinancial
• ISM Manufacturing PMI Index
• Recent mergers and acquisitions
• More trading objects...