The traditional Laguerre RSI indicator is a popular forex oscillator indicator that tells you when the market is overbought or oversold.
The MTF version of the Laguerre RSI indicator enables you to select and use data from other time frames.
For instance, you can choose to use data from the 1-hour chart while working with the 5-minute chart.
Furthermore, the MTF Laguerre indicator paints oversold and overbought dots in a separate trading window.
- Red dots appear on the chart when the oscillator falls below 0.15 from above. This is an oversold signal.
- Green dots appear on the chart when the oscillator rises above 0.75 from below. This is an overbought signal.
For better performance, it’s recommended to use the Laguerre MTF indicator together with a trend-following technical indicator.
For example, use together with an SMA, EMA, or Bollinger bands.
Trade signals from the MTF Laguerre indicator in the direction of the underlying trend.
- When the trend is upward, trade the oversold red dots area.
- When the trend is downward, trade the overbought green dots area.
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
Free Download
Download the “LaguerreRSI Alert.ex4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD 1-Hour chart below displays the MTF Laguerre Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the MTF Laguerre MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open a new buy trade position when the Laguerre MTF oscillator rises back above 0.15 from below.
Place a stop loss below short-term support or use your own preferred SL method.
Sell Signal: Open a new sell trade position when the Laguerre MTF oscillator falls back below 0.75 from above.
Place a stop loss above short-term resistance or use your own preferred SL method.
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
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (gamma, price type, smooth, show levels, show crossings, time frame, alerts on) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: oscillator
