RSI in Laguerre Time Self Adjusting With Fractal Energy Usage Notes

@kibicricket Not heresy at all. However, most of us are not adept at TradeStation, so don't be surprised if you only hear crickets 😄 in reply to your post.

I switched over to TradeStation for a while because of some shortcomings in the TOS platform. But because that community is more likely to request money for the least bit of help, I came back to TOS. TOS still sometimes makes me crazy but it is such a small price to pay. The UseThinkScript community has some amazing mathematicians, analysts, and scripters. Everything that I have learned is thanks to the posts shared for free on this site.
@MerryDay I couldn't agree more with you. However, I need to automate the application for for some research I am doing. I don't mind paying for the conversion if someone is able. Thanks for the reply!
 
@kibicricket If you don't mind paying then you should post your request through the TradeStation platform. It is a better bet, as offhand, I do not know of any regular posters on this forum who are TradeStation scripters. Good luck to you and your research.
 
This short tutorial is an example of how to use the indicator as shown near the bottom of the Trend Reversals Indicator with Signals Thread.
The RSI Laguerre and FE (called CHOP in the example) are separated so that their action can be seen easier.

July, 2019 Version for TOS: RSI Laguerre Auto-Adjusted with Fractal Energy algorithm https://tos.mx/LldzdS Scan Code: https://tos.mx/bRLjdq

Code and Notes in next comment below .,..
Further toward the bottom are even more usage notes.
j4ohLvG.png


1w3NHd5.png


Further toward the bottom are usage notes from "Master Yoda" himself!

Hi I appreciate all the hard work that the everyone puts into this and wondering if someone one could help with a piece of scan code.

I have seen the scan code that is in the first thread and it has show tickers that RSI cross above 0.20 or below 0.80 and that's great it works wonder's however I am wondering how the following would work or know of some tutorials for thinkscript that I can investigate:

I would like to use an anchor higher timeframe of a Daily and look on an 4 hour chart or hourly for the 0.20 RSI cross, however I would like to scan for the Daily time frame RSI to be increasing from yesterday's value or close. I understand that there is the conditions that can be set to have RSI above 0.20 but that would give me also downtrending RSI's. I would like to scan for for Increasing RSI on the Daily that is above 0.20 and then add an additional study to show the RSI cross above 0.20 on an lower time frame.

I guess the scanning for the increasing RSI on the daily has be puzzled and confused. Wondering if anyone has any tips around how that can be achieved?
 
Hi I appreciate all the hard work that the everyone puts into this and wondering if someone one could help with a piece of scan code.

I have seen the scan code that is in the first thread and it has show tickers that RSI cross above 0.20 or below 0.80 and that's great it works wonder's however I am wondering how the following would work or know of some tutorials for thinkscript that I can investigate:

I would like to use an anchor higher timeframe of a Daily and look on an 4 hour chart or hourly for the 0.20 RSI cross, however I would like to scan for the Daily time frame RSI to be increasing from yesterday's value or close. I understand that there is the conditions that can be set to have RSI above 0.20 but that would give me also downtrending RSI's. I would like to scan for for Increasing RSI on the Daily that is above 0.20 and then add an additional study to show the RSI cross above 0.20 on an lower time frame.

I guess the scanning for the increasing RSI on the daily has be puzzled and confused. Wondering if anyone has any tips around how that can be achieved?
I think Mobius originally had RSI crossing down .90 and up .10 because of the precise action it emcompasses, I can be wrong, maybe there's something written to change that. I remember on the thinkscript timeline there were several weeks of discussion on this subject, and so many versions.
 
I think Mobius originally had RSI crossing down .90 and up .10 because of the precise action it emcompasses, I can be wrong, maybe there's something written to change that. I remember on the thinkscript timeline there were several weeks of discussion on this subject, and so many versions.
Hi Thomas, When Mobius gave his version for TheoTrade.com members it was 20-80 because that was what Doc Severson was using for his classes at the time. It could be that 90-10 was best for Mobius time frame as he would trade the ORB. Paris would know but I don't believe it's important enough to ask. In other words, It may be personal preference and what on has their Gamma set at.
 
Hi Thomas, When Mobius gave his version for TheoTrade.com members it was 20-80 because that was what Doc Severson was using for his classes at the time. It could be that 90-10 was best for Mobius time frame as he would trade the ORB. Paris would know but I don't believe it's important enough to ask. In other words, It may be personal preference and what on has their Gamma set at.
I say potato you say potato,....I understand. It was good when it was introduced. Thanks for your reply good to hear from you.
 
This short tutorial is an example of how to use the indicator as shown near the bottom of the Trend Reversals Indicator with Signals Thread.
The RSI Laguerre and FE (called CHOP in the example) are separated so that their action can be seen easier.

July, 2019 Version for TOS: RSI Laguerre Auto-Adjusted with Fractal Energy algorithm https://tos.mx/LldzdS Scan Code: https://tos.mx/bRLjdq

Code and Notes in next comment below .,..
Further toward the bottom are even more usage notes.
j4ohLvG.png


1w3NHd5.png


Further toward the bottom are usage notes from "Master Yoda" himself!
@markos @tomsk thanks for the detailed notes on RSI Laguerre, what is the current version of the indicator that you personally use?
 
@markos @tomsk thanks for the detailed notes on RSI Laguerre, what is the current version of the indicator that you personally use?
@Jonas99 I currently use 2 different types, which is a bad thing to do. The version that I posted is my current version. There are many versions here. The thing to do is put one on a chart and live with it for a while. Find the one that fits your style. Good luck.
btw, change the 1st 2 numbers from current settings and try 5, 8, then 8, 14, then 14, 21 and see the difference. Leave the last number at 8.
 
Last edited:
@markos Interesting... I will have to check this out...I know you wrote about the RSI LaGuerre and TMO...I've read most of what you had to say...I still need to fully understand how that particular indicator is designed to work. I have seen several versions of it over here and each looks a bit different than its previous version. Is there a best timeframe to use the RSI LaGuerre? Because on a 5 min or 15 min chart the signals seem to come in much later than other indicators making me think its more of a daily or weekly swing trade indicator vs intraday...I could be wrong tho.

EDIT: I just pulled up a few versions of the RSI...what is the proper settings for the indicator? I have one that only has an NFE option and that is set at 13 while another version has NFE is set at 8 glength set to 13 and beta dev to 8...both give different readings...

What is the best most up to date version of the RSI LaGuerre? I have like 5 of them and they are all different.

BTW...this is the most accurate version that I have seen of the RSI LaGuerre...what are your thoughts on this version? I think JQ enhanced it...


Code:
## PLEASE READ ALL NOTES.
## OneNote Archive Name: RSI in Laguerre Time Self Adjusting With Fractal Energy _Mobius_JQ
## Archive Section: Momentum
## Suggested Tos Name: RSI_LaguerreTime_v20180919_Mobius_JQvisuals
## Archive Date: 5.15.2018
## Archive Notes:
## "##" indicates an addition or adjustment by the OneNote Archivist
## Modified Code Follows:
## 5.15.2018  JQ added code to permit user to disable bull and or bear alerts
## 5.19.2018  JQ added AddChartBubbble code on FE plot
## 9.19.2018  JQ added color to RSI Line
## 8.26.2019  JQ Added Gamma.Hide at row 97 or 98.  Please Comment Out (#) if you want gamma back

# TheoTrade RSI in Laguerre Time Self Adjusting With Fractal Energy
# Mobius
# V03.06.15.2016
#combine with:
# RSI in Laguerre Time Self Adjusting With Fractal Energy
# Mobius
# V02.07.2014
# V03.06.15.2016
# Both Fractal Energy and RSI are plotted. RSI in cyan and FE in yellow. Look for trend exhaustion in the FE and a reversal of RSI or Price compression in FE and an RSI reversal.

# Lounge Notes

#15:51 Mobius©: Short trade setup I look for with RSI Laguerre adjusted with FE.
#1) Polarity Change - Equity has gone from making higher highs and higher lows to making a lower high and lower low and is now putting in another lower high
#2) RSI Laguerre is above .8 and descending from 1
#3) Fractal Energy is below .38 and nose down or above .6 and rolling over. In the first case, below .38, FE is indicating trend exahustion and RSI is likely showing as a peak and not running across pegged at 1. In the second case Price has risen to a lower resistance and has been rolling slowly over building energy.

#Mobius©: I use a very simple method – RSI Laguerre and Fractal Energy on a list of very liquid stocks. I look for polarity change and trade when both RSI and FE are in “confluence”. If volatility is high enough I sell spreads if not I buy them. Other than hedging (which I do a lot of) that's it. I like it simple.

#The typical base setting I like to use for the FE is a length of 8. If I'm trading options I like to look at it about the length of time I'm buying or selling the option for. I want to know if it's reverting and where the energy is so I'll use a longer length for reversion and a shorter length to see if energy is building or waning.

#If RSI Laguerre is descending and FE over .6, that tells me something is changing and I'm already looking at an equity I've determined is about to make a polarity change. So the worse case that happens is that the security grinds sideways for a few days.

#A reading of the FE over .6 is an indication that energy has been built up. If the FE is high (over .6) and RSI LaGuerre is breaking lower FE will follow suit. If RSI reverses and goes above .8 I'm outa there, with the assumption I have a short position.

#FE is a gauge of both mean reverting and linearity. Descending readings indicate a trend is on.
#A reading below .3 indicates exhaustion in trend or near exhaustion.
#A reading above .6 indicates moving sideways with rapid reversion and energy building for a move again.
#Example:
#Above .6 - Think price compression or squeeze
#Below .3 - Think running out of gas

#Here's an example:

#FE at 60 periods is oscillating around .5 tightly while FE at 8 periods is over .6. Zscore is over 2 and is starting to roll over. That is a good short to the mean.
#Short trade setup I look for with RSI Laguerre adjusted with FE.

#1) Polarity Change - Equity has gone from making higher highs and higher lows to making a lower high and lower low and is now putting in another lower high
#2) RSI Laguerre is above .8 and descending from 1
#3) Fractal Energy is below .38 and nose down or above .6 and rolling over. In the first case, below .38, FE is indicating trend exhustion and RSI is likely showing as a peak and not running across pegged at 1. In the second case price has risen to a lower resistance and has been rolling slowly over building energy.

#Code Start

declare lower;

#Inputs:
input RSI_BullishTrigger = .2;
input RSI_BearishTrigger = .8;
input soundBullAlerts = no; ## 5.15.2018 new code
input soundBearAlerts = no; ## 5.15.2018 new code
input nFE = 13;#hint nFE: length for Fractal Energy calculation.

# Variables:
def o;
def h;
def l;
def c;
def CU1;
def CU2;
def CU;
def CD1;
def CD2;
def CD;
def L0;
def L1;
def L2;
def L3;
plot RSI;
plot OS;
plot OB;

# Calculations

o = (open + close[1]) / 2;
h = Max(high, close[1]);
l = Min(low, close[1]);
c = (o + h + l + close) / 4;

plot gamma = Log(Sum((Max(high, close[1]) - Min(low, close[1])), nFE) /

        (Highest(high, nFE) - Lowest(low, nFE)))

            / Log(nFE);
gamma.SetDefaultColor(Color.Yellow);
gamma.hide(); #Comment out Gamma.Hide it you want it to show.#

L0 = (1 – gamma) * c + gamma * L0[1];
L1 = -gamma * L0 + L0[1] + gamma * L1[1];
L2 = -gamma * L1 + L1[1] + gamma * L2[1];
L3 = -gamma * L2 + L2[1] + gamma * L3[1];
if L0 >= L1

then {

    CU1 = L0 - L1;

    CD1 = 0;

} else {

    CD1 = L1 - L0;

    CU1 = 0;

}

if L1 >= L2

then {

    CU2 = CU1 + L1 - L2;

    CD2 = CD1;

} else {

    CD2 = CD1 + L2 - L1;

    CU2 = CU1;

}

if L2 >= L3

then {

    CU = CU2 + L2 - L3;

    CD = CD2;

} else {

    CU = CU2;

    CD = CD2 + L3 - L2;

}

RSI = if CU + CD <> 0 then CU / (CU + CD) else 0;

# RSI.SetDefaultColor(Color.Cyan);  #JQ Mobius original code
# RSI Painting code by JQ 2018.07.30

RSI.AssignValueColor(

        if (RSI > RSI_BearishTrigger) or ((RSI >= RSI[1]) and (RSI > RSI_BullishTrigger))

            then Color.GREEN

        else if (RSI < RSI_BUllishTrigger) or ((RSI < RSI[1]) and (RSI < RSI_BearishTrigger))

            then Color.RED

        else Color.white);

RSI.setlineWeight(2);


OS = if IsNaN(close) then Double.NaN else 0.2;
OS.SetDefaultColor(Color.Gray);
OS.HideBubble();
OS.HideTitle();

OB = if IsNaN(close) then Double.NaN else 0.8;
OB.SetDefaultColor(Color.Gray);
OB.HideBubble();
OB.HideTitle();

plot FEh = if isNaN(close) then double.nan else .618;
FEh.SetStyle(Curve.Long_Dash);
FEh.HideBubble();
FEh.SetDefaultColor(Color.Dark_Gray);
FEh.HideTitle();

plot FEl = if isNaN(close) then double.nan else .382;
FEl.SetStyle(Curve.Long_Dash);
FEl.SetDefaultColor(Color.Dark_Gray);
FEl.HideBubble();
FEl.HideTitle();

AddCloud(0, OS, Color.Red, Color.Red);
AddCloud(OB, 1, Color.Green, Color.Green);

Alert(soundBearAlerts and RSI crosses below .8, "", Alert.BAR, Sound.Ding); ## 5.15.2018 JQ added Boolean
Alert(soundBullAlerts and RSI crosses above .2, "", Alert.BAR, Sound.Ding) ;## 5.15.2018 JQ added Boolean

#  Labels below added by Johnny Quotron based on zztop notes above  2018-04-11

def FE = gamma;

#addlabel (FE < .382, " FE is Linear (Price Trending) = " + FE, Color.light_GREEN);
#addlabel (FE > .618, " FE is Non-Linear/Random (Trendless) = " + FE, Color.Light_GRAY);
#addlabel (FE <= .618 and FE >= .382, " FE is transitioning = " + FE, Color.Light_orange);

#AddChartBubble(!IsNaN(close) and IsNaN(close[-1]), FE, if FE < .382 then "Trending" else "Not Trending", Color.WHITE, yes);

#AddChartBubble(!IsNaN(close) and IsNaN(close[-1]), FE, if FE < .382 then "Trending" else if FE < .618 then "Transitioning" else "Building Energy", gamma.#takeValueColor(), yes); ## 5.19.2018 JQ

# End Code RSI_LaguerreTime_v20180919_Mobius_JQvisuals
Hey We're you able to get the FE to work on this? I have my charts set to 1 day 1 m and this shows beautifully but I'm missing the FE lines.
 
I wanted to also know what is the best parameters for this indicator as well because it’s preset parameters are nfe (8), glength (13), beta dev (8) I know it can’t be perfect but I want it more accurate in a way that it doesn’t just give early or late confirmation. What would be good parameters for 5day 1-4 hour, 20Day 1-4 hour, 30 day 1-4 hour or 3Month 1Day charts?
 
I wanted to also know what is the best parameters for this indicator as well because it’s preset parameters are nfe (8), glength (13), beta dev (8) I know it can’t be perfect but I want it more accurate in a way that it doesn’t just give early or late confirmation. What would be good parameters for 5day 1-4 hour, 20Day 1-4 hour, 30 day 1-4 hour or 3Month 1Day charts?
Your 5day 1-4 hour, 20Day 1-4 hour, 30 day 1-4 hour would all be the same. As this indicator does not use any range all functions.

Generally, nfe and beta dev are not touched. Playing with the length of 13, will probably not provide more accuracy. But it doesn't hurt to try.
Recommend you put it on your chart. Nothing beats personal experience ;) The only way you will know what works best for you is to play with the settings and see how the indicator line up w/ your strategy and with your other indicators. To determine if this indicator brings value, analyze it over different timeframes, across history and with multiple instruments.
 

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