# MetaStock | Traders' Tips from TASC Magazine - Laguerre RSI

## Laguerre rsi indicator formula

While indicator runs flat above level, it means that an uptrend is strong.
While indicator runs flat below level, it means that a downtrend is strong.

## Relative Strength Index – RSI Definition & Calculation

You can trade other currency pairs with this strategy. But you must bear in mind that the volatility of currencies is different during different trade sessions. So, you will need to find out both the most suitable time and the correct Gamma parameter.

Thank you for these wonderful Indicators. I put the 8 Gama filter lines on the chart to function like a MA cross-over and strength of Trend indication. Also put 7 Laguerre RSi of 7 different values for short-term and long-term indication. Looks like it is working very well.

Laguerre RSI allows changing only the Gamma parameter. (But if you come by another version of Laguerre some time, you'll have the idea of what parameters to use).
For the convenience of working with the indicator, you can change the window scale:

There is a similar situation: almost all the trades entered in a different time interval are losing. In other words, you can enter a trade only once a day with this strategy. However, you easily study its performance on the historical data, having compared the losing/winning trades ratio over a period of, for example, 6 months.

The idea of weighing each period was introduced by John Ehlers whose indicator, the Laguerre indicator, uses spectral analysis of maximum entropy based on the Laguerre polynomials to analyze a smoothed period. In general terms, a simplified formula of the indicator looks like this:

This smoothing has its flaws, however. For example, there appears a trend in the flat market, and a trader should pick up the trend beginning to enter a trade. If the period is short, the indicator reacts to the price change immediately. But if in the period of 65, 9 out of 65 bars had roughly equal closing prices, the 65th bar would have a little influence on the total result. This is called a delayed forex signal.