The Laguerre PPO indicator is good for beginners as beginners tend to counter-trend trade but rarely have success with traditional technical indicators such as the Relative Strength Index or the Commodity Channel Index (CCI). A common and popular indicator is the Lauggerre RSI from John Ehlers and the Price Percentage Oscillator (PPO) is a classical momentum oscillator, so the Laguerre PPO is a mixture between Laguerre RSI and PPO Oscillator.
Some traders have tested the Laguerre using many years of data and over 90% of the trades entered on the extreme signals (Red and Lime Green), all followed through with an eventual reversal but on some occasions, there were times that drawdown was high, so if you have the patience and you're not using huge leverage, this is a very solid indicator.
No specific requirements, this indicator should work with all versions of the cTrader Desktop platform, but not the mobile version.
How to Trade Using Laguerre PPO?
This is a very simple indicator to visually identify the tops and bottoms of an asset, when you see 2 or more Red bars consider entering a short position, when you see 2 or more Green bars consider a long position. Expect some drawdown before the trend changes and do not use this indicator as the only market for a signal, use your existing strategy and other technical indicators for confirmation.
The indicator allows the option to set the colour for all the bars so that you can adjust for finer control on the top and bottom signals. We have converted the indicator from MT4, so we are still in the process of working out the settings and they will be updated soon.
- Candles Back = the number of bars where the indicator is displayed)
- Gamma = 0.6. This is Laguerre smoothing (averaging) parameter, the higher the ‘gamma’, the smoother the line will be at the output.
- Price = indicates the maximum power of the sellers within a price period
Remove Author Box
You can easily remove the author box shown on the chart by setting the show author parameter in the indicator settings to No.
How To Install & Remove
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
If you have any questions, please first search our product help forum for the answer, if you cannot find it, post a new question.
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