OPEN-SOURCE SCRIPT
Laguerre Stochastic | Adulari
Description:
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?
Features:
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.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Adulari - Software Company
Site: adulari.dev
Discord: discord.gg/adulari
Site: adulari.dev
Discord: discord.gg/adulari
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Adulari - Software Company
Site: adulari.dev
Discord: discord.gg/adulari
Site: adulari.dev
Discord: discord.gg/adulari
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.