In this article, we show a custom indicator for Metatrader 4 and Metatrader 5 that allow adding 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 used in conjunction with other indicators to increase the reliability of the signals.
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.
The following image shows what this indicator looks like on the MT4 platform:
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 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 gets back to 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 gets back to line 0.5 from below.
You can download this indicator for Metatrader 4 and 5 using the following link: