Laguerre RSI indicator
is a powerful Vertex FX client side indicator based on the RSI indicator useful
in determining market cycles.
It is bounded between
0 and 100 but the period is calculated dynamically based upon the market cycle.
To calculate the Laguerre RSI, we first
calculate the Relative Strength (RS). In the normal RSI calculations we use
closing prices.
But in case of
Laguerre RSI instead of closing prices, we use values from the Laguerre filter
values.
Then RS is calculated
from the sum of the difference in prices over the observation period where that
difference is positive (CU). Similarly, the sum of the difference in prices
over the observation period where that difference is negative (CD) is
calculated expressed as a positive number. RSI is calculated as 100 - 100 / (1
+ CU/CD).
Buy: Place Enter
Buy trade when the Laguerre RSI (Purple) closes above the EMA of the Laguerre
RSI (Brown) below 40 level. Do not enter Buy trade if candle has gap-up
opening, or if the Purple line closes above the Brown line above 40 level.
Place stop-loss below nearest Swing Low.
Sell: Place Sell
trade when the Laguerre RSI (Purple) closes below the EMA of the Laguerre RSI
(Brown) below 60 level. Do not enter Sell trade if candle has gap-down opening,
or if the Purple line closes below the Brown line below 60 level. Place
stop-loss above nearest Swing High.
To use Laguerre RSI indicator
download it from here, then place it at VertexFX VTL directory:
C:\ProgramData\VertexFX
Client Terminals\"Company name"\VTL10\Local VTL Scripts
Then right click on
the tree and select refresh or restart your client station and you will find
under VTL local scripts in your client
terminal.
You can check this
video that talks about Laguerre RSI indicator: