The Laguerre Indicator delivers ultimate overbought/oversold signals that help you determine the timings and levels for swing trade entries.
This indicator mainly works in range-bound markets. Whenever the price gets closer to the daily price ranges, it signals whether the market has turned overbought or oversold. When the signal matches the price position, we pull the trigger.
The Laguerre Indicator works in all timeframes in MT4. However, according to our observation, the indicator seemed much balanced with signal accuracies when applied in between 15 and 30-minute charts.
Furthermore, it ideally suits forex and stock day traders. Besides, you can fit it into any short-term trading strategy.
The Laguerre Indicator’s signal curve ranges from 0 to 1 for demonstrating the OB/OS conditions. The signal curve drops to zero when the price turns oversold following a massive bearish correction.
So, the indicator value swings upwards from the zero level means the market has an intention to initiate a bullish move from the current price level.
When the Laguerre value reaches 1, we consider it as an overbought market. The indicator usually generates overbought signals when the price fails to break above its recent highs and intends to move south.
Since the Laguerre Indicator doesn’t throw a direct buy/sell signal, it is crucial to assess the price levels correctly before considering an entry.
Also read: Exness Review – Is it The Best Forex Broker?
Laguerre Indicator for MT4: Buy Conditions
- The price rebounds from its recent low or rejects a support
- The Laguerre value starts moving upwards from zero level
- Exit long when the value turns lower than 1 after hitting the overbought zone
- The price fails to break above its recent high or a resistance
- The Laguerre curve hits the overbought level then starts moving downwards
- Exit short once the indicator line rebounds higher from the oversold zone