Laguerre Indicator for Metatrader

In this article we show a custom indicator for Metatrader 4 and Metatrader 5 that allow to add the Laguerre indicator to a window below the price chart. This indicator can be used to generate buy and sale trading signals, but like all tools developed in technical analysis it is recommended its use in conjunction with other indicators to increase the reliability of the signals.

Indicator Parameters

gamma (normal value = 0.7): This parameter is the multiplier used in calculating the level lines. The higher this value more smoother will be the line of this indicator.

CountBars (normal value = 950): It represents the largest number of bars/candles that are used to calculate the Laguerre. It can be used with increasing values ​​unless you experience performance problems with the platform since the higher the number of bars the higher the consumption of resources.

Candlestick chart of GBP/USD with Laguerre indicator (purple line). MT4 platform of FXOpen

The Laguerre is a custom technical indicator developed for Metatrader which is not based on any of the normal standard indicators of Metatrader 4 or 5. Basically what it does is to show a weighted trend line in a separate window from the price chart. This indicator can be used to generate simple entry and exit trading signals. In general, this indicator can be used to trade  as follows:
  • When the indicator line crosses the area from 0.15 to 0.2 levels and from below to above the trader can  open a long position. The long positions can be closed once the indicator get back to the line 0.5 from above.
  • When the indicator line crosses the area from 0.75 to 0.8 levels and from above to below the trader can  open a short position. The short positions can be closed once the indicator get back to the line 0.5 from below.   
You can download this indicator for Metatrader 4 and 5 using the following link: 



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