About the Laguerre RSI MTF Indicator
The Laguerre RSI MTF indicator is a momentum oscillator designed to identify overbought and oversold market conditions with added multi-timeframe functionality.
It is based on the traditional Laguerre RSI, which smooths price data to reduce noise and deliver more stable signals compared to classic RSI.
The MTF feature allows traders to analyze higher-timeframe momentum while executing trades on a lower timeframe chart.
For example, a trader can view 1-hour Laguerre RSI signals while trading on a 5-minute chart. This helps align short-term entries with broader market conditions.
The indicator plots colored dots in a separate window to mark key momentum shifts.
These visual signals simplify decision-making and make it easier to focus on high-probability setups when combined with a trend-following tool.
Free Download
Download the “LaguerreRSI Alert.ex4” MT4 indicator
Key Features
- Laguerre RSI oscillator with reduced market noise.
- Multi-timeframe data selection.
- Red dots highlight oversold conditions.
- Green dots highlight overbought conditions.
- Works in a separate MT4 indicator window.
- Compatible with all MT4 symbols and timeframes.
Indicator Chart
The chart displays the Laguerre RSI MTF indicator in a subwindow below price.
Colored dots mark overbought and oversold levels, helping traders time entries in line with higher-timeframe momentum.
Guide to Trade with Laguerre RSI MTF Indicator
Buy Rules
- The overall market trend must be bullish.
- Laguerre RSI prints red dots in the oversold zone.
- Enter a buy trade after confirmation on the active timeframe.
Sell Rules
- The overall market trend must be bearish.
- Laguerre RSI prints green dots in the overbought zone.
- Enter a sell trade after confirmation on the active timeframe.
Stop Loss
- Place the stop loss beyond the most recent consolidation area.
- Exit the trade if price momentum shifts against the higher timeframe.
- Avoid tightening stops during active volatility.
Take Profit
- Set take profit near the next momentum reaction zone.
- Close the trade when opposite-colored dots appear.
- Scale out of positions during extended trend moves.
Laguerre RSI MTF + Super Signals Histogram MT4 Scalping Strategy
This MT4 scalping strategy combines the Laguerre RSI MTF indicator with the Super Signals Histogram.
The Laguerre RSI marks oversold conditions with red dots when the oscillator falls below 0.15 from above, and overbought conditions with green dots when it rises above 0.75 from below.
The Super Signals Histogram shows bullish momentum when the histogram is red above 0 and bearish momentum when it is below 0.
This combination helps you scalp short-term moves on M1 and M5 charts with higher accuracy.
Buy Entry Rules
- Wait for the Laguerre RSI to generate a red dot around 0.15, indicating an oversold condition.
- Confirm that the Super Signals Histogram is red and above 0, signaling bullish momentum.
- Enter a buy trade at the close of the confirming candle.
- Place a stop loss 5–10 pips below the recent swing low on M1, or 10–15 pips on M5.
- Set a take profit target of 8–15 pips on M1 or 15–25 pips on M5, or trail using the histogram for exit signals.
Sell Entry Rules
- Wait for the Laguerre RSI to generate a green dot around 0.75, indicating an overbought condition.
- Confirm that the Super Signals Histogram is below 0, signaling bearish momentum.
- Enter a sell trade at the close of the confirming candle.
- Place a stop loss 5–10 pips above the recent swing high on M1, or 10–15 pips on M5.
- Set a take profit target of 8–15 pips on M1 or 15–25 pips on M5, or trail using the histogram.
Advantages
- Combines oversold/overbought signals with momentum confirmation.
- Suitable for fast scalping on M1 and M5 charts.
- Clear visual dots and histogram signals reduce guesswork.
- Helps avoid counter-trend trades by requiring both indicators to align.
- Flexible exit options using fixed targets or histogram trailing.
Drawbacks
- In extremely volatile or choppy markets, the Laguerre RSI can generate premature signals.
- Small stop-losses may be hit by sudden spikes or spread widening.
- Requires constant attention to catch M1 signals effectively.
- Take profit targets are small, so transaction costs may impact net gains.
- Not suitable for holding trades during major news events.
Example Case Study 1
On EURUSD M1, the Laguerre RSI produced a red dot around 0.15 as the price briefly dipped to an oversold level.
The Super Signals Histogram was red above 0, confirming bullish momentum.
A buy trade was entered at 1.1072 with a stop loss at 1.1065 (7 pips) and a take profit at 1.1082 (10 pips).
Price quickly rose, hitting the target within a few minutes, resulting in a +10 pip scalp.
Example Case Study 2
On GBPJPY M5, the Laguerre RSI gave a green dot around the 0.75 overbought level, while the Super Signals Histogram was below 0, indicating bearish momentum.
A sell trade was entered at 153.80 with a stop loss at 153.95 (15 pips) and a take profit at 153.55 (25 pips).
The pair trended downward steadily, and the take profit was reached within 20 minutes for a +25 pip gain.
Strategy Tips
- Trade only when both the Laguerre RSI and Super Signals Histogram align for higher probability trades.
- Focus on pairs with good liquidity and low spreads for M1 scalping.
- Use higher timeframes to confirm general trend direction to reduce false signals.
- Consider partial exits if the histogram begins to fade before reaching the full target.
- Keep a trading journal to track which pairs and sessions yield the best M1/M5 scalps.
Download Now
Download the “LaguerreRSI Alert.ex4” Metatrader 4 indicator
FAQ
What makes the MTF Laguerre RSI different from the standard version?
The MTF version allows traders to use higher-timeframe data while trading lower charts.
This improves signal quality and reduces false entries.
Which timeframes work best with this indicator?
Common combinations include M5 with H1 data or M15 with H4 data.
Traders should test combinations that match their trading style.
Are the overbought and oversold levels fixed?
The default levels are 0.75 for overbought and 0.15 for oversold. These can be adjusted in the indicator inputs.
Summary
The Laguerre RSI MTF indicator offers a refined approach to momentum trading by combining smooth oscillator logic with multi-timeframe analysis.
This helps traders stay aligned with broader market conditions while refining entries.
Its visual dot-based signals, flexible timeframe settings, and compatibility with trend filters make it a solid tool for traders seeking more disciplined overbought and oversold strategies.
