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Laguerre Relative Strength Index (Laguerre RSI)

GKD-C Time Fractal Energy Adaptive Laguerre RSI [Loxx]Giga Kaleidoscope GKD-C Time Fractal Energy Adaptive Laguerre RSI is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System". █ GKD-C Time Fractal Energy Adaptive Laguerre RSI Cracking the Code of Price Momentum with the Time Fractal Energy Adaptive Laguerre RSI Indicator The Time Fractal Energy adaptive Laguerre RSI is a technical indicator used in financial trading to provide a measure of the momentum of a security's price. It combines several mathematical concepts and techniques, including the Laguerre polynomial, fractal patterns, and adaptive smoothing factors, to provide a more accurate representation of price momentum. Before diving into the details of how this indicator works, it's important to understand what momentum is and why it's important in trading. Momentum is a measure of the strength and persistence of a trend in a security's price. It can be calculated in various ways, but the basic idea is to look at the change in price over a certain period and use that to infer whether the trend is likely to continue or reverse. One common momentum indicator is the Relative Strength Index (RSI), which measures the magnitude of recent price changes. The RSI is calculated by dividing the average gain of the price over a certain period by the average loss over the same period, and then normalizing the result to a scale of 0 to 100. A reading above 70 is generally considered overbought, while a reading below 30 is oversold. While the RSI is a useful tool, it can be prone to noise and false signals, especially in volatile markets. This is where the Time Fractal Energy adaptive Laguerre RSI comes in. It combines the RSI with several other techniques to provide a smoother, more accurate measure of momentum. Let's break down the components of the Time Fractal Energy adaptive Laguerre RSI in more detail. -Time Fractal Energy: "Time Fractal" refers to the idea that the behavior of a system can be characterized by self-similar patterns at different time scales. "Energy" in this context refers to the intensity or strength of the fractal pattern. In the context of the indicator, this means that the momentum of a security's price can be characterized by fractal patterns at different time scales. -Laguerre polynomial: The Laguerre polynomial is a mathematical function used to smooth out data. In the context of the Time Fractal Energy adaptive Laguerre RSI, it is used to filter out noise and highlight underlying trends in the RSI data. -Adaptive smoothing factors: The smoothing factor used in the Laguerre polynomial is adjusted based on the volatility of the underlying security. This means that the indicator is more responsive to changes in volatility, which can help it perform better in different market conditions. Now, let's look at how these components come together in the Time Fractal Energy adaptive Laguerre RSI indicator. The code you provided is written in Pine Script, a programming language used on the trading platform TradingView. Here's a step-by-step explanation of what the code does: 1. The input parameters are defined at the top of the code. These include the length of the Average True Range (ATR) period, the price used for the RSI calculation (in this case, the closing price), the smoothing factor, and the upper and lower levels that define overbought and oversold conditions. 2. The Laguerre Filter function is defined using the Laguerre polynomial. This function is used to smooth out the RSI data and filter out noise. 3. The Laguerre RSI function is defined. This function calculates the RSI value based on the Laguerre Filtered data. This step further removes any noise from the RSI calculation, resulting in a smoother, more accurate measure of momentum. 4. The ATR value is calculated based on the highest and lowest prices of the security over the specified period. ATR measures the volatility of a security and is used to determine the adaptive smoothing factor. 5. The gamma value is calculated based on the ATR and the high and low prices of the security over the specified period. Gamma is used as the adaptive smoothing factor in the Laguerre Filter function. The higher the volatility, the higher the gamma value, resulting in a more responsive filter. 6. The Laguerre Filtered RSI value is smoothed further using the gamma value and the smoothing factor. This step helps to reduce any remaining noise in the momentum signal and provide a more accurate representation of the underlying trend. 7. The signal line is created based on the smoothed Laguerre Filtered RSI value from the previous bar. The signal line acts as a trigger for buying or selling, depending on whether it crosses above or below the upper or lower levels defined in the input parameters. The Time Fractal Energy adaptive Laguerre RSI indicator aims to provide a more accurate measure of momentum by combining several mathematical techniques. The Laguerre polynomial is used to filter out noise and highlight underlying trends, while the adaptive smoothing factor helps to adjust the filter based on the volatility of the underlying security. The result is a smoother, more accurate measure of momentum that can be used to make more informed trading decisions. It's important to note that no indicator is perfect, and the Time Fractal Energy adaptive Laguerre RSI is no exception. Like any technical indicator, it should be used in combination with other tools and analysis to make informed trading decisions. Additionally, traders should be aware that the indicator may perform differently in different market conditions and should be used in conjunction with other tools to account for changing market conditions. In conclusion, the Time Fractal Energy adaptive Laguerre RSI is a technical indicator used in financial trading that aims to provide a more accurate measure of momentum. It combines several mathematical techniques, including the Laguerre polynomial, fractal patterns, and adaptive smoothing factors, to filter out noise and highlight underlying trends. While no indicator is perfect, the Time Fractal Energy adaptive Laguerre RSI can be a useful tool when used in combination with other analysis to make informed trading decisions. Additional Features This indicator allows you to select from 33 source types. They are as follows: Close Open High Low Median Typical Weighted Average Average Median Body Trend Biased Trend Biased (Extreme) HA Close HA Open HA High HA Low HA Median HA Typical HA Weighted HA Average HA Average Median Body HA Trend Biased HA Trend Biased (Extreme) HAB Close HAB Open HAB High HAB Low HAB Median HAB Typical HAB Weighted HAB Average HAB Average Median Body HAB Trend Biased HAB Trend Biased (Extreme) What are Heiken Ashi "better" candles? Heiken Ashi "better" candles are a modified version of the standard Heiken Ashi candles, which are a popular charting technique used in technical analysis. Heiken Ashi candles help traders identify trends and potential reversal points by smoothing out price data and reducing market noise. The "better formula" was proposed by Sebastian Schmidt in an article published by BNP Paribas in Warrants & Zertifikate, a German magazine, in August 2004. The aim of this formula is to further improve the smoothing of the Heiken Ashi chart and enhance its effectiveness in identifying trends and reversals. Standard Heiken Ashi candles are calculated using the following formulas: Heiken Ashi Close = (Open + High + Low + Close) / 4 Heiken Ashi Open = (Previous Heiken Ashi Open + Previous Heiken Ashi Close) / 2 Heiken Ashi High = Max (High, Heiken Ashi Open, Heiken Ashi Close) Heiken Ashi Low = Min (Low, Heiken Ashi Open, Heiken Ashi Close) The "better formula" modifies the standard Heiken Ashi calculation by incorporating additional smoothing, which can help reduce noise and make it easier to identify trends and reversals. The modified formulas for Heiken Ashi "better" candles are as follows: Better Heiken Ashi Close = (Open + High + Low + Close) / 4 Better Heiken Ashi Open = (Previous Better Heiken Ashi Open + Previous Better Heiken Ashi Close) / 2 Better Heiken Ashi High = Max (High, Better Heiken Ashi Open, Better Heiken Ashi Close) Better Heiken Ashi Low = Min (Low, Better Heiken Ashi Open, Better Heiken Ashi Close) Smoothing Factor = 2 / (N + 1), where N is the chosen period for smoothing Smoothed Better Heiken Ashi Open = (Better Heiken Ashi Open * Smoothing Factor) + (Previous Smoothed Better Heiken Ashi Open * (1 - Smoothing Factor)) Smoothed Better Heiken Ashi Close = (Better Heiken Ashi Close * Smoothing Factor) + (Previous Smoothed Better Heiken Ashi Close * (1 - Smoothing Factor)) The smoothed Better Heiken Ashi Open and Close values are then used to calculate the smoothed Better Heiken Ashi High and Low values, resulting in "better" candles that provide a clearer representation of the market trend and potential reversal points. It's important to note that, like any other technical analysis tool, Heiken Ashi "better" candles are not foolproof and should be used in conjunction with other indicators and analysis techniques to make well-informed trading decisions. Heiken Ashi "better" candles, as mentioned previously, provide a clearer representation of market trends and potential reversal points by reducing noise and smoothing out price data. When using these candles in conjunction with other technical analysis tools and indicators, traders can gain valuable insights into market behavior and make more informed decisions. To effectively use Heiken Ashi "better" candles in your trading strategy, consider the following tips: Trend Identification: Heiken Ashi "better" candles can help you identify the prevailing trend in the market. When the majority of the candles are green (or another color, depending on your chart settings) and there are no or few lower wicks, it may indicate a strong uptrend. Conversely, when the majority of the candles are red (or another color) and there are no or few upper wicks, it may signal a strong downtrend. Trend Reversals: Look for potential trend reversals when a change in the color of the candles occurs, especially when accompanied by longer wicks. For example, if a green candle with a long lower wick is followed by a red candle, it could indicate a bearish reversal. Similarly, a red candle with a long upper wick followed by a green candle may suggest a bullish reversal. Support and Resistance: You can use Heiken Ashi "better" candles to identify potential support and resistance levels. When the candles are consistently moving in one direction and then suddenly change color with longer wicks, it could indicate the presence of a support or resistance level. Stop-Loss and Take-Profit: Using Heiken Ashi "better" candles can help you manage risk by determining optimal stop-loss and take-profit levels. For instance, you can place your stop-loss below the low of the most recent green candle in an uptrend or above the high of the most recent red candle in a downtrend. Confirming Signals: Heiken Ashi "better" candles should be used in conjunction with other technical indicators, such as moving averages, oscillators, or chart patterns, to confirm signals and improve the accuracy of your analysis. In this implementation, you have the choice of AMA, KAMA, or T3 smoothing. These are as follows: Kaufman Adaptive Moving Average (KAMA) The Kaufman Adaptive Moving Average (KAMA) is a type of adaptive moving average used in technical analysis to smooth out price fluctuations and identify trends. The KAMA adjusts its smoothing factor based on the market's volatility, making it more responsive in volatile markets and smoother in calm markets. The KAMA is calculated using three different efficiency ratios that determine the appropriate smoothing factor for the current market conditions. These ratios are based on the noise level of the market, the speed at which the market is moving, and the length of the moving average. The KAMA is a popular choice among traders who prefer to use adaptive indicators to identify trends and potential reversals. Adaptive Moving Average The Adaptive Moving Average (AMA) is a type of moving average that adjusts its sensitivity to price movements based on market conditions. It uses a ratio between the current price and the highest and lowest prices over a certain lookback period to determine its level of smoothing. The AMA can help reduce lag and increase responsiveness to changes in trend direction, making it useful for traders who want to follow trends while avoiding false signals. The AMA is calculated by multiplying a smoothing constant with the difference between the current price and the previous AMA value, then adding the result to the previous AMA value. T3 The T3 moving average is a type of technical indicator used in financial analysis to identify trends in price movements. It is similar to the Exponential Moving Average (EMA) and the Double Exponential Moving Average (DEMA), but uses a different smoothing algorithm. The T3 moving average is calculated using a series of exponential moving averages that are designed to filter out noise and smooth the data. The resulting smoothed data is then weighted with a non-linear function to produce a final output that is more responsive to changes in trend direction. The T3 moving average can be customized by adjusting the length of the moving average, as well as the weighting function used to smooth the data. It is commonly used in conjunction with other technical indicators as part of a larger trading strategy. █ Giga Kaleidoscope Modularized Trading System Core components of an NNFX algorithmic trading strategy The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm: 1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc. 2. Baseline - a moving average to identify price trend 3. Confirmation 1 - a technical indicator used to identify trends 4. Confirmation 2 - a technical indicator used to identify trends 5. Continuation - a technical indicator used to identify trends 6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown 7. Exit - a technical indicator used to determine when a trend is exhausted What is Volatility in the NNFX trading system? In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period. True range is calculated as the maximum of the following values: -Current high minus the current low -Absolute value of the current high minus the previous close -Absolute value of the current low minus the previous close ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses. Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass What is a Baseline indicator? The baseline is essentially a moving average, and is used to determine the overall direction of the market. The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR). Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail. By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend. What is a Confirmation indicator? Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI). The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend. Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators. In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades. What is a Continuation indicator? In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy. What is a Volatility/Volume indicator? Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa. By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements. What is an Exit indicator? The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy. The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit. The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses. In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor. Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time. How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above? Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are: 1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm) 2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm) 3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm) 4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm) 5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm) (additional module types will added in future releases) Each module interacts with every module by passing data between modules. Data is passed between each module as described below: GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy. This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm. What does the application of the GKD trading system look like? Example trading system: Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles Baseline: Hull Moving Average Volatility/Volume: Hurst Exponent Confirmation 1: Time Fractal Energy Adaptive Laguerre RSI as shown on the chart above Confirmation 2: Williams Percent Range Continuation: Time Fractal Energy Adaptive Laguerre RSI Exit: Rex Oscillator Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain. Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm) Standard Entry 1. GKD-C Confirmation 1 Signal 2. GKD-B Baseline agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume agrees Baseline Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume agrees 6. GKD-C Confirmation 1 signal was less than 7 candles prior Volatility/Volume Entry 1. GKD-V Volatility/Volume signal 2. GKD-C Confirmation 1 agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 2 agrees 5. GKD-B Baseline agrees 6. GKD-C Confirmation 1 signal was less than 7 candles prior Continuation Entry 1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously 2. GKD-B Baseline hasn't crossed since entry signal trigger 3. GKD-C Confirmation Continuation Indicator signals 4. GKD-C Confirmation 1 agrees 5. GKD-B Baseline agrees 6. GKD-C Confirmation 2 agrees 1-Candle Rule Standard Entry 1. GKD-C Confirmation 1 signal 2. GKD-B Baseline agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean Next Candle: 1. Price retraced (Long: close < close or Short: close > close ) 2. GKD-B Baseline agrees 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume agrees 1-Candle Rule Baseline Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 1 signal was less than 7 candles prior Next Candle: 1. Price retraced (Long: close < close or Short: close > close ) 2. GKD-B Baseline agrees 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume Agrees 1-Candle Rule Volatility/Volume Entry 1. GKD-V Volatility/Volume signal 2. GKD-C Confirmation 1 agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 1 signal was less than 7 candles prior Next Candle: 1. Price retraced (Long: close < close or Short: close > close) 2. GKD-B Volatility/Volume agrees 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-B Baseline agrees PullBack Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is beyond 1.0x Volatility of Baseline Next Candle: 1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 2. GKD-C Confirmation 1 agrees 3. GKD-C Confirmation 2 agrees 4. GKD-V Volatility/Volume Agrees ]█ Setting up the GKD The GKD system involves chaining indicators together. These are the steps to set this up. Use a GKD-C indicator alone on a chart 1. Inside the GKD-C indicator, change the "Confirmation Type" setting to "Solo Confirmation Simple" Use a GKD-V indicator alone on a chart **nothing, it's already useable on the chart without any settings changes Use a GKD-B indicator alone on a chart **nothing, it's already useable on the chart without any settings changes Baseline (Baseline, Backtest) 1. Import the GKD-B Baseline into the GKD-BT Backtest: "Input into Volatility/Volume or Backtest (Baseline testing)" 2. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "Baseline" Volatility/Volume (Volatility/Volume, Backte st) 1. Inside the GKD-V indicator, change the "Testing Type" setting to "Solo" 2. Inside the GKD-V indicator, change the "Signal Type" setting to "Crossing" (neither traditional nor both can be backtested) 3. Import the GKD-V indicator into the GKD-BT Backtest: "Input into C1 or Backtest" 4. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "Volatility/Volume" 5. Inside the GKD-BT Backtest, a) change the setting "Backtest Type" to "Trading" if using a directional GKD-V indicator; or, b) change the setting "Backtest Type" to "Full" if using a directional or non-directional GKD-V indicator (non-directional GKD-V can only test Longs and Shorts separately) 6. If "Backtest Type" is set to "Full": Inside the GKD-BT Backtest, change the setting "Backtest Side" to "Long" or "Short 7. If "Backtest Type" is set to "Full": To allow the system to open multiple orders at one time so you test all Longs or Shorts, open the GKD-BT Backtest, click the tab "Properties" and then insert a value of something like 10 orders into the "Pyramiding" settings. This will allow 10 orders to be opened at one time which should be enough to catch all possible Longs or Shorts. Solo Confirmation Simple (Confirmation, Backtest) 1. Inside the GKD-C indicator, change the "Confirmation Type" setting to "Solo Confirmation Simple" 1. Import the GKD-C indicator into the GKD-BT Backtest: "Input into Backtest" 2. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "Solo Confirmation Simple" Solo Confirmation Complex without Exits (Baseline, Volatility/Volume, Confirmation, Backtest) 1. Inside the GKD-V indicator, change the "Testing Type" setting to "Chained" 2. Import the GKD-B Baseline into the GKD-V indicator: "Input into Volatility/Volume or Backtest (Baseline testing)" 3. Inside the GKD-C indicator, change the "Confirmation Type" setting to "Solo Confirmation Complex" 4. Import the GKD-V indicator into the GKD-C indicator: "Input into C1 or Backtest" 5. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "GKD Full wo/ Exits" 6. Import the GKD-C into the GKD-BT Backtest: "Input into Exit or Backtest" Solo Confirmation Complex with Exits (Baseline, Volatility/Volume, Confirmation, Exit, Backtest) 1. Inside the GKD-V indicator, change the "Testing Type" setting to "Chained" 2. Import the GKD-B Baseline into the GKD-V indicator: "Input into Volatility/Volume or Backtest (Baseline testing)" 3. Inside the GKD-C indicator, change the "Confirmation Type" setting to "Solo Confirmation Complex" 4. Import the GKD-V indicator into the GKD-C indicator: "Input into C1 or Backtest" 5. Import the GKD-C indicator into the GKD-E indicator: "Input into Exit" 6. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "GKD Full w/ Exits" 7. Import the GKD-E into the GKD-BT Backtest: "Input into Backtest" Full GKD without Exits (Baseline, Volatility/Volume, Confirmation 1, Confirmation 2, Continuation, Backtest) 1. Inside the GKD-V indicator, change the "Testing Type" setting to "Chained" 2. Import the GKD-B Baseline into the GKD-V indicator: "Input into Volatility/Volume or Backtest (Baseline testing)" 3. Inside the GKD-C 1 indicator, change the "Confirmation Type" setting to "Confirmation 1" 4. Import the GKD-V indicator into the GKD-C 1 indicator: "Input into C1 or Backtest" 5. Inside the GKD-C 2 indicator, change the "Confirmation Type" setting to "Confirmation 2" 6. Import the GKD-C 1 indicator into the GKD-C 2 indicator: "Input into C2" 7. Inside the GKD-C Continuation indicator, change the "Confirmation Type" setting to "Continuation" 8. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "GKD Full wo/ Exits" 9. Import the GKD-E into the GKD-BT Backtest: "Input into Exit or Backtest" Full GKD with Exits (Baseline, Volatility/Volume, Confirmation 1, Confirmation 2, Continuation, Exit, Backtest) 1. Inside the GKD-V indicator, change the "Testing Type" setting to "Chained" 2. Import the GKD-B Baseline into the GKD-V indicator: "Input into Volatility/Volume or Backtest (Baseline testing)" 3. Inside the GKD-C 1 indicator, change the "Confirmation Type" setting to "Confirmation 1" 4. Import the GKD-V indicator into the GKD-C 1 indicator: "Input into C1 or Backtest" 5. Inside the GKD-C 2 indicator, change the "Confirmation Type" setting to "Confirmation 2" 6. Import the GKD-C 1 indicator into the GKD-C 2 indicator: "Input into C2" 7. Inside the GKD-C Continuation indicator, change the "Confirmation Type" setting to "Continuation" 8. Import the GKD-C Continuation indicator into the GKD-E indicator: "Input into Exit" 9. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "GKD Full w/ Exits" 10. Import the GKD-E into the GKD-BT Backtest: "Input into Backtest" Baseline + Volatility/Volume (Baseline, Volatility/Volume, Backtest) 1. Inside the GKD-V indicator, change the "Testing Type" setting to "Baseline + Volatility/Volume" 2. Inside the GKD-V indicator, make sure the "Signal Type" setting is set to "Traditional" 3. Import the GKD-B Baseline into the GKD-V indicator: "Input into Volatility/Volume or Backtest (Baseline testing)" 4. Inside the GKD-BT Backtest, change the setting "Backtest Special" to "Baseline + Volatility/Volume" 5. Import the GKD-V into the GKD-BT Backtest: "Input into C1 or Backtest" 6. Inside the GKD-BT Backtest, change the setting "Backtest Type" to "Full". For this backtest, you must test Longs and Shorts separately 7. To allow the system to open multiple orders at one time so you can test all Longs or Shorts, open the GKD-BT Backtest, click the tab "Properties" and then insert a value of something like 10 orders into the "Pyramiding" settings. This will allow 10 orders to be opened at one time which should be enough to catch all possible Longs or Shorts. Requirements Inputs Confirmation 1: GKD-V Volatility / Volume indicator Confirmation 2: GKD-C Confirmation indicator Continuation: GKD-C Confirmation indicator Solo Confirmation Simple: GKD-B Baseline Solo Confirmation Complex: GKD-V Volatility / Volume indicator Solo Confirmation Super Complex: GKD-V Volatility / Volume indicator Stacked 1: None Stacked 2+: GKD-C, GKD-V, or GKD-B Stacked 1 Outputs Confirmation 1: GKD-C Confirmation 2 indicator Confirmation 2: GKD-C Continuation indicator Continuation: GKD-E Exit indicator Solo Confirmation Simple: GKD-BT Backtest Solo Confirmation Complex: GKD-BT Backtest or GKD-E Exit indicator Solo Confirmation Super Complex: GKD-C Continuation indicator Stacked 1: GKD-C, GKD-V, or GKD-B Stacked 2+ Stacked 2+: GKD-C, GKD-V, or GKD-B Stacked 2+ or GKD-BT Backtest Additional features will be added in future releases.
Pine Script™ indicator
by loxx
GKD-C ATR-Adaptive, Smoothed Laguerre RSI [Loxx]Giga Kaleidoscope ATR-Adaptive, Smoothed Laguerre RSI is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System". █ Giga Kaleidoscope Modularized Trading System What is Loxx's "Giga Kaleidoscope Modularized Trading System"? The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading. What is an NNFX algorithmic trading strategy? The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm: 1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc. 2. Baseline - a moving average to identify price trend 3. Confirmation 1 - a technical indicator used to identify trends 4. Confirmation 2 - a technical indicator used to identify trends 5. Continuation - a technical indicator used to identify trends 6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown 7. Exit - a technical indicator used to determine when a trend is exhausted How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above? Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are: 1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm) 2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm) 3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm) 4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm) 5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm) (additional module types will added in future releases) Each module interacts with every module by passing data between modules. Data is passed between each module as described below: GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy. This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm. What does the application of the GKD trading system look like? Example trading system: Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles Baseline: Hull Moving Average as shown on the chart above Volatility/Volume: Volatility Ratio as shown on the chart above Confirmation 1: ATR-Adaptive, Smoothed Laguerre RSI as shown on the chart above Confirmation 2: Williams Percent Range Continuation: Fisher Transform Exit: Rex Oscillator Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain. Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm) Standard Entry 1. GKD-C Confirmation 1 Signal 2. GKD-B Baseline agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume agrees Baseline Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume agrees 6. GKD-C Confirmation 1 signal was less than 7 candles prior Continuation Entry 1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously 2. GKD-B Baseline hasn't crossed since entry signal trigger 3. GKD-C Confirmation Continuation Indicator signals 4. GKD-C Confirmation 1 agrees 5. GKD-B Baseline agrees 6. GKD-C Confirmation 2 agrees 1-Candle Rule Standard Entry 1. GKD-C Confirmation 1 signal 2. GKD-B Baseline agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean Next Candle: 1. Price retraced (Long: close < close or Short: close > close ) 2. GKD-B Baseline agrees 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume agrees 1-Candle Rule Baseline Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 4. GKD-C Confirmation 1 signal was less than 7 candles prior Next Candle: 1. Price retraced (Long: close < close or Short: close > close ) 2. GKD-B Baseline agrees 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume Agrees PullBack Entry 1. GKD-B Baseline signal 2. GKD-C Confirmation 1 agrees 3. Price is beyond 1.0x Volatility of Baseline Next Candle: 1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean 3. GKD-C Confirmation 1 agrees 4. GKD-C Confirmation 2 agrees 5. GKD-V Volatility/Volume Agrees █ ATR-Adaptive, Smoothed Laguerre RSI What is ATR-Adaptive, Smoothed Laguerre RSI? ATR-Adaptive, Smoothed Laguerre RSI is an adaptive Laguerre RSI indicator with smoothing to reduce noise. The Laguerre RSI indicator created by John F. Ehlers is described in his book "Cybernetic Analysis for Stocks and Futures". For this version, Instead of using fixed periods for Laguerre RSI calculation, this indicator uses an ATR ( average True Range ) adapting method to adjust the calculation period. This makes the RSI more responsive in some periods (periods of high volatility ), and smoother in order periods (periods of low volatility). There are two signal types: middle and levels. Requirements Inputs Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator Confirmation 2: GKD-C Confirmation indicator Outputs Confirmation 2 and Solo Confirmation: GKD-E Exit indicator Confirmation 1: GKD-C Confirmation indicator Continuation: GKD-E Exit indicator Additional features will be added in future releases.
Pine Script™ indicator
by loxx
1
Laguerre Stochastic | AdulariDescription: The Laguerre Stochastic is similar to a 4-period regular Stochastic, except that a Laguerre transform has been applied for price smoothing. The Laguerre transform is a mathematical technique that allows smooth indicators to be built using small amounts of data. How do I use it? Never use this indicator as standalone trading signal, it should be used as confluence. When the value is above the middle line this shows the bullish trend is strong. When the value is below the middle line this shows the bearish trend is strong. When the value crosses above the upper line this indicates the trend may reverse downwards. When the value crosses below the lower line this indicates the trend may reverse upwards. When the value crosses above the signal this indicates the current bearish trend is getting weak and may reverse upwards. When the value crosses below the signal this indicates the current bullish trend is getting weak and may reverse downwards. Features: Oscillator value indicating the difference between highs and lows fractioned by the close price. %D value acting as a smoothed version of the %K. Horizontal lines such as oversold, overbought and middle lines, indicating possible interest zones. How does it work? 1 — Calculate regular Stochastic value. 2 — Apply the Laguerre transform. 3 — Calculate %D value by applying smoothing to the %K value.
Pine Script™ indicator
by Adulari
ATR-Adaptive, Smoothed Laguerre RSI [Loxx]ATR-Adaptive, Smoothed Laguerre RSI is an adaptive Laguerre RSI indicator with smoothing to reduce noise What is Laguerre RSI? The Laguerre RSI indicator created by John F. Ehlers is described in his book "Cybernetic Analysis for Stocks and Futures". This version: Instead of using fixed periods for Laguerre RSI calculation, this indicator uses an ATR (average True Range) adapting method to adjust the calculation period. This makes the RSI more responsive in some periods (periods of high volatility), and smoother in order periods (periods of low volatility). Also this indicator adds an option to have smoothed source input including Loxx's Expanded Source Types. Included -Loxx's Expanded Source Types -Bar coloring
Pine Script™ indicator
by loxx
3
KINSKI Multi RSI DivergenceThis extremely useful indicator combines several RSI variants (can be displayed simultaneously or alone) with many setting options. The RSI variants can also be displayed as an extra histogram, which provides additional valuable information. Furthermore, it is possible to set smoothing types, volume and stochastic based calculations for each variant. Relative Strength Index (RSI) The Relative Strength Index ( RSI ) is a momentum indicator that measures the extent of recent price changes to analyse overbought or oversold conditions. RSI values range from 0 to 100. In general, RSI divergence means that the RSI indicator is moving in the opposite direction compared to the price. So while the price is moving, the RSI is telling us in advance that we can expect a change in direction. RSX Indicator The RSX is the noise-free version of the more familiar RSI oscillator. Normally, any indicator can be smoothed by applying a moving average. However, a major disadvantage of such a method is that there is a time lag between the indicator and the price. The RSX indicator tries to do this without signal delay. Money Flow Indicator (MFI) The MFI is essentially the RSI with the added aspect of volume . Because of its close similarity to the RSI , the MFI can be used in very similar ways. RSI Laguerre The RSI Laguerre works in the same way as the classic RSI , but is more sensitive to recent prices. When it crosses the signal line at the value of 0.15 from the bottom to the top, a buy signal is created, while overbought markets have values of 0.75 or higher Detection of divergences The detection of divergences in the RSI is one of the most important functions of this indicator. The reason is that an divergence is a more reliable signal than the overbought and oversold indicators themselves. You get overbought and oversold signals all the time. However, the divergence is a rare event. In general, divergence means that the RSI indicator is moving in the opposite direction compared to the price. So while the price is moving, the RSI is telling us in advance that we can expect a change in direction. Positive divergence A positive divergence is when the price trend has lower lows and lower highs, while the indicator does the opposite - higher highs and higher lows. The price continues to fall while the RSI indicator begins to rise. Negative divergence Negative divergence is the opposite of positive divergence. It applies to uptrends where the price reaches higher highs and higher lows. However, the RSI shows lower highs and lower lows - the price goes up but the RSI goes down. The price closes with higher highs and higher lows, while the indicator shows the opposite - lower lows and lower highs, confirming a negative divergence. As a result, there is a sharp decline in the price. Have fun using and trying out this flexible indicator!
Pine Script™ indicator
by KINSKI
1
[blackcat] L2 Ehlers Laguerre RSI IndicatorLevel: 2 Background John F. Ehlers introuced Laguerre RSI Indicator in his "Cybernetic Analysis for Stocks and Futures" chapter 14 on 2004. Function “Truth and science always triumph over ignorance and superstition.” said by Dr. Ehlers. We can generate superior smoothing with very short filters, it follows that we should be able to create superior indicators using very short data lengths also. The use of shorter data lengths means that we can make the indicators more responsive to changes in the price. The Laguerre RSI will be used as an example. Key Signal RSI ---> Laguerre RSI Indicator fast line RSI(1) ---> Laguerre RSI Indicator slow line Pros and Cons 100% John F. Ehlers definition translation of original work, even variable names are the same. This help readers who would like to use pine to read his book. If you had read his works, then you will be quite familiar with my code style. Remarks The 34th script for Blackcat1402 John F. Ehlers Week publication. Readme In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts. The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works. Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element. Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level. Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated. Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop. Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Pine Script™ indicator
by blackcat1402
Trend-Following Combo-SuperTrend, EMA, Aroon, DMI, Laguerre RSIThis is a trend-following indicator which condenses two SuperTrend indicators -- one based on analysis over a shorter period of time (1.5, 7), and one based on analysis over a longer period of time (1.65, 100) -- into a single indicator which appears on your chart only when both the shorter- and longer-term analysis indicates a "SuperTrend" in the same direction. Additionally, potential trade entry indicators are displayed in the form of up and down arrows when (by default) three of the following five indicators suggest that the market is trending in the same direction as both the shorter- and longer-term SuperTrend indicators: EMA Crossover (8, 15) Aroon Indicator (8) Aroon Oscillator (8) Directional Movement Index (DI +/-) (8) Laguerre RSI (13) You may update the parameters of any of the indicators to match your own preferences. Additionally, you may also adjust the "Threshold" of indicators that must be in agreement with the SuperTrend to show a potential trade entry arrow. Bear in mind that if you set the Indicator Threshold too low, you will see more frequent trade entry arrows, many of which will not be profitable if taken. Similarly, set this value too high, and you will see fewer trade entry arrows that may not appear until after most of the "juice" in the trend has evaporated. Ideal values for the threshold seem to be between 2-4, depending on the symbol you are trading. The following image shows all of the indicators referenced above on a 5-minute chart of the SPY during a single trading day: And, here is the same period of time showing only the Trend-Following Combo indicator with default settings: This indicator would not have been possible save for work contributed by the following: SuperTrend by Rajandran R Aroon w/ crossovers highlighted by seiglerj Aroon Oscillator by jcrewolinsky Directional Movement Index by TradingView Laguerre RSI (Self Adjusting Alpha with Fractals Energy) by everget
Pine Script™ indicator
by jadamcraig
13
FREE INDICATOR: Laguerre RSIAbout: 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. Grab the source code here: pastebin.com Installation video by @ChrisMoody here : blog.tradingview.com                  ░░░░░░░░░░░░░░░ 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 :)
Pine Script™ indicator
by TheLark
61