TMO or RSI in Laguerre Time with FE - Q&A

horserider

horserider

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You are confirming a momentum indicator with a second one that shows the same signals. So they will confirm for sure but also will fail in unison. As seen in post 19 while the RSI was a bit steadier as far as false signals.
 
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tomsk

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@Jerald643 I suppose one way of doing so is to overlay both indicators into a single lower chart.
However the scaling of both indicators are different so you'll need to do some normalizing in the code
RSI Laguerre is a bounded oscillator between 0 and 1 while the TMO is bounded between -15 to +1
 
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Jerald643

New member
I guess
@Jerald643 I suppose one way of doing so is to overlay both indicators into a single lower chart.
However the scaling of both indicators are different so you'll need to do some normalizing in the code
RSI Laguerre is a bounded oscillator between 0 and 1 while the TMO is bounded between -15 to +1
What im trying to say is the Momentum study changes (overbought or over sold) way before the RSI Laguerre does. Once the RSI reaches the .90 the move may have already happened . I guess this would matter more in day trading . Thanks for the response.
 
markos

markos

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I guess
What im trying to say is the Momentum study changes (overbought or over sold) way before the RSI Laguerre does. Once the RSI reaches the .90 the move may have already happened . I guess this would matter more in day trading . Thanks for the response.
@Jerald643 Please see my articles in the Tutorials Section... It isn't the .90 that is the signal. It's the .10 and the cross up that is the signal.
Check it from that point. Good luck.
btw, Never change the RSI LaGuerre numbers no matter the time frame. LaGuerre Polynomials are the thing that makes this indicator adjust to the "speed" of the stock. Find the settings you like and keep them there.
 
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Jerald643

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Thanks for the response. .10 on the RSI Laguerre ? To buy I assume? I meant you could short at .90 over bought in RSI. I was looking at .90 on RSI Laguerre . Sorry , but what settings would i change to make it "adapt" to market speed?
 
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markos

markos

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@Jerald643 If you have the version that I shared in the Tutorials, the default settings are 8-13-8. They can be changed to suit.
The adaptation to market speed is in the LaGuerre Polynomial formula.
That is why the settings don't change (generally) whether it's weekly or 1 hour.
Some versions are .10 - .90 and others are .20 - .80, either way, the buy signal is when the "Blue" line crosses above the .20 line and sell is a drop below .80. Be careful for whipsaws.
 
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Thomas

Active member
@markos Very good post, you are completely right on. Find a set up you understand and build one indicator around that. BTW, I posted a TOS chart set up to you, the eye sees B&W patterns far easier than color, but that is a whole different discussion. What is important, find a set up, flag patterns are the only set up with the highest win rate, build an indicator to find that, and watch price action.......
 
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