# Laguerre Used for Stop Placement

##### New member
Here's a great way to use Laguerre for stop placement.

Code:
``````#Laguerre Filter created by TradeScripter

AssignBackgroundColor(CreateColor(8, 0, 15));

input price = close;
input gamma = 0.2;

rec L0 = (1 - gamma) * price + gamma * L0[1];
rec L1 = -gamma * L0 + L0[1] + gamma * L1[1];
rec L2 = -gamma * L1 + L1[1] + gamma * L2[1];
rec L3 = -gamma * L2 + L2[1] + gamma * L3[1];
def FIlt = (L0 + 2 * L1 + 2 * L2 + L3) / 6;
def FIR = (price + 2 * price[1] + 2 * price[2] + price[3]) / 6;

plot Plot1 = FIlt;
plot Plot2 = FIR;

#Plot1.SetDefaultColor(color.red);
#Plot2.SetDefaultColor(color.blue);
Plot1.AssignValueColor(if Filt > FIlt[1] then Color.GREEN else Color.RED);

Plot2.AssignValueColor(if FIR  > FIlt and FIR > FIR[1]  then Color.GREEN else if FIR < FIlt and FIR < FIR[1] then Color.RED else Color.WHITE);

#AssignPriceColor(if FIR  > FIlt and FIR > FIR[1]  then Color.GREEN else if FIR < FIlt and FIR < FIR[1] then Color.RED else Color.WHITE);``````

Last edited:

#### diazlaz

##### Well-known member
2019 Donor
VIP
thanks for sharing @ebtrader seems has potential! - Applicable across all time frames. Nice work and thanks again!

##### New member
thanks for sharing @ebtrader seems has potential! - Applicable across all time frames. Nice work and thanks again!

i love studies that work across all time frames like this one. i you have any tweaks to it, please let me know.

#### markos

##### Well-known member
VIP
@ebtrader just curious, why do you have Gamma at 0.2 vs 0.5 or higher?

##### New member
@ebtrader just curious, why do you have Gamma at 0.2 vs 0.5 or higher?

it has been ages since i tweaked it, but i guess that's the setting that helped me get what i wanted. Is 0.5 the standard out there?

#### markos

##### Well-known member
VIP
Not necessarily, I have seen it in other scripts this low, but more often, I've seen it above 70. It may be script dependent,

#### diazlaz

##### Well-known member
2019 Donor
VIP
Seems a value of 0.5 to 0.8 seems to work better in shorter timeframes.

##### New member
I just tried 0.5 and it is really neat - shows the turns sooner, but not confirmed until crosses over - so basically shows the countertrend trades until the crossover.

##### New member
It might be best to have both 0.5 and 0.2 on the same chart to keep you in the trade.

##### New member
here is a version that can put more than one gamma setting on the same chart.

Code:
``````#Laguerre Filter created by TradeScripter

AssignBackgroundColor(CreateColor(8, 0, 15));

input price = close;
input gamma = 0.2;

rec L0 = (1 - gamma) * price + gamma * L0[1];
rec L1 = -gamma * L0 + L0[1] + gamma * L1[1];
rec L2 = -gamma * L1 + L1[1] + gamma * L2[1];
rec L3 = -gamma * L2 + L2[1] + gamma * L3[1];
def FIlt = (L0 + 2 * L1 + 2 * L2 + L3) / 6;
def FIR = (price + 2 * price[1] + 2 * price[2] + price[3]) / 6;

plot Plot1 = FIlt;
plot Plot2 = FIR;

Plot1.AssignValueColor(if Filt > FIlt[1] then Color.GREEN else Color.RED);

Plot2.AssignValueColor(if FIR  > FIlt and FIR > FIR[1]  then Color.GREEN else if FIR < FIlt and FIR < FIR[1] then Color.RED else Color.WHITE);

#Laguerre 2

input price2 = close;
input gamma2 = 0.2;

rec L00 = (1 - gamma2) * price2 + gamma2 * L00[1];
rec L11 = -gamma2 * L00 + L00[1] + gamma2 * L11[1];
rec L22 = -gamma2 * L11 + L11[1] + gamma2 * L22[1];
rec L33 = -gamma2 * L22 + L22[1] + gamma2 * L33[1];
def FIlt2 = (L00 + 2 * L11 + 2 * L22 + L33) / 6;
def FIR2 = (price2 + 2 * price2[1] + 2 * price2[2] + price2[3]) / 6;

plot Plot3 = FIlt2;
plot Plot4 = FIR2;

Plot3.AssignValueColor(if Filt2 > FIlt2[1] then Color.GREEN else Color.RED);

Plot4.AssignValueColor(if FIR2  > FIlt2 and FIR2 > FIR2[1]  then Color.GREEN else if FIR2 < FIlt2 and FIR2 < FIR2[1] then Color.RED else Color.WHITE);``````

#### markos

##### Well-known member
VIP
here is a version that can put more than one gamma setting on the same chart.

Code:
``````#Laguerre Filter created by TradeScripter

AssignBackgroundColor(CreateColor(8, 0, 15));

input price = close;
input gamma = 0.2;

rec L0 = (1 - gamma) * price + gamma * L0[1];
rec L1 = -gamma * L0 + L0[1] + gamma * L1[1];
rec L2 = -gamma * L1 + L1[1] + gamma * L2[1];
rec L3 = -gamma * L2 + L2[1] + gamma * L3[1];
def FIlt = (L0 + 2 * L1 + 2 * L2 + L3) / 6;
def FIR = (price + 2 * price[1] + 2 * price[2] + price[3]) / 6;

plot Plot1 = FIlt;
plot Plot2 = FIR;

Plot1.AssignValueColor(if Filt > FIlt[1] then Color.GREEN else Color.RED);

Plot2.AssignValueColor(if FIR  > FIlt and FIR > FIR[1]  then Color.GREEN else if FIR < FIlt and FIR < FIR[1] then Color.RED else Color.WHITE);

#Laguerre 2

input price2 = close;
input gamma2 = 0.2;

rec L00 = (1 - gamma2) * price2 + gamma2 * L00[1];
rec L11 = -gamma2 * L00 + L00[1] + gamma2 * L11[1];
rec L22 = -gamma2 * L11 + L11[1] + gamma2 * L22[1];
rec L33 = -gamma2 * L22 + L22[1] + gamma2 * L33[1];
def FIlt2 = (L00 + 2 * L11 + 2 * L22 + L33) / 6;
def FIR2 = (price2 + 2 * price2[1] + 2 * price2[2] + price2[3]) / 6;

plot Plot3 = FIlt2;
plot Plot4 = FIR2;

Plot3.AssignValueColor(if Filt2 > FIlt2[1] then Color.GREEN else Color.RED);

Plot4.AssignValueColor(if FIR2  > FIlt2 and FIR2 > FIR2[1]  then Color.GREEN else if FIR2 < FIlt2 and FIR2 < FIR2[1] then Color.RED else Color.WHITE);``````
That's ok for testing purposes.

#### chillc15

##### New member
it has been ages since i tweaked it, but i guess that's the setting that helped me get what i wanted. Is 0.5 the standard out there?
ebtrader curious if you used any other complimentary indicator with this that was not redundant. Thanks

#### skynetgen

##### Well-known member
I made some visual enhancement to this and fixed code duplication: cannot stand non pretty code lol.
https://tos.mx/T7ASwHJ

#### soary

##### Member
I made some visual enhancement to this and fixed code duplication: cannot stand non pretty code lol.
https://tos.mx/T7ASwHJ

I didn't want redundancy as mentione in this tread so tried to get this code but TOS says this URL appears to be broken please check and try again

#### soary

##### Member
Added this script to my chart but nothing shows up but it is the weekend. Does it only show up during market hours? Thanks

T

#### Thomas

##### Guest
Seems a value of 0.5 to 0.8 seems to work better in shorter timeframes.
.08-.13 are original parameters...

T

#### Thomas

##### Guest
I just tried 0.5 and it is really neat - shows the turns sooner, but not confirmed until crosses over - so basically shows the countertrend trades until the crossover.

I think you created some very interesting indicators I've discovered.

T

#### Thomas

##### Guest
I didn't want redundancy as mentione in this tread so tried to get this code but TOS says this URL appears to be broken please check and try again
The code works,...copy/paste,...if it doesn't work, scratch last letter....

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