About: Averages, and the way they are compared and calculated make up a large amount of the indicators out there, so the fun thing about new averages, is how they open up a whole new group of indicators.
Usage: This is Laguerre RSI. You'll notice it acts a little different than your normal RSI, and it can be traded in different ways. It can be used as a switch, or to view bursts of momentum. Combine with your style and see if you notice anything. It might just be what you were looking for! Stay tuned for more scripts & ideas by following me on TradingView.
░░░░░░░░░░░░░░░ Feel free to follow me to keep up with my latest scripts! ░░░░░░░░░░░░░░░ ░░░░░░░░░░░░ PLEASE THUMB UP OR STAR IF YOU LIKE THIS INDICATOR! ░░░░░░░░░░░░ I'd like as many people as possible to get it :)
Notes de version
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Due to popular demand, this is the Laguerre RSI built for Pine Script 4. A simple update from my original released in 2014.
ABOUT This indicator is coded as defined by John Ehlers in his book "Cybernetic Analysis for Stocks and Futures", with minor visualization changes (colors) added by me. Colors can be turned off if desired.
I've also added the ability to smooth the indicator. If smoothing is set any greater than 1 (default), an EMA is applied to the indicator. This introduces some lag, but it may be beneficial for some systems. That is something you will need to test for yourself and your strategy.
USAGE You'll notice the Laguerre RSI acts a little different when compared to your normal RSI, and it can be traded in different ways. You can use it as a switch / filter, to indicate bursts of momentum, the direction of momentum, and more.
Combine this with your own strategies and you may find it useful. It might just be what you were looking for!
FINAL COMMENTS Follow me on TradingView, I almost never post anything new ;-) Trade smart. Don't get caught up looking for the perfect indicator, it doesn't exist.
I don't get how I should interpret it, can you please make a quick explanation? Your description isn't very explanatory. What's the difference between normal RSI and how should I interpret different colors?
fxmorr
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Hi, very good indicator :) is it possible to make it multi time frame? Thanks in advance.
ChrisMoody
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AKA...The Coding Genius......Strikes Again...Showing us all up with the THREE color Option...
LEGEND!!!
TheLark
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XD I just have the advantage of coding in a very similar language for 3 years, that's all :)
ChrisMoody
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No reason to be modest.....Your TV's Premier Programmer...Uncontested...
LocoDinero
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@ChrisMoody, built-in modesty is one of the best kind of "programming" there is!!! In other words, there is ALWAYS a reason to being modest and its called humility. ;) ..But sure, You both have reasons to be proud with Your stellar work here in TW over the years, so thanks to You both!!! :D
Vincent121
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what do they mean exactly please?
Mactormind
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Where can I find info on how to use this indicator properly? Im a little confused :-/
TheLark
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@Mactormind, This is the original paper that was published by the creator of this indicator which gives some trading ideas: mesasoftware.com/papers/TimeWarp.pdf That being said, all indicators are something you will need to spend time with on paper to really understand their nuances. It is almost always beneficial to pair indicators with other non-collinear indicators to get a true reading of the market at any given time.
Mactormind
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@TheLark, Hey thanks for the response Lark. I understand the fundamentals of a standard RSI, as well as always pairing other indicators with ones such as this. I was more or less looking for a "quick and dirty" explanation of the coloring on this indicator in particular. As Ive never seen a 3 color RSI before and or what it means as the line changes color....