Adaptive Laguerre Filter ALF V2 Forex indicator technique (MT5)
The technical indicator Adaptive Laguerre Filter was developed by John Ehlers in his book "Cybernetic Analysis for Stocks and Futures: Cutting-Edge DSP Technology to Improve Your Trading."
The indicator Adaptive Laguerre Filter is similar to a moving average Laguerre Filter, with little lag and following closely the price movements.
The algorithm of the indicator Adaptive Laguerre Filter smoothes the moving average price and filter noise of the market but uses an additional variable Gamma factor to monitor the measures of previous price bars.
Interpretation Signals And Rules Of Trading
Not trader if the ALF curve is flat.
- Buying Signals
. The price is above the moving average Adaptive Laguerre Filter ALF - Trend bullish
. Fast moving average crosses upward moving average slow Adaptive Laguerre Filter ALF - Trend bullish
. The curve moving averages Adaptive Laguerre Filter ALF is toward the top (positive angle) - Trend bullish
- sell signal
. The price is below the moving average Adaptive Laguerre Filter ALF - Trend bearish
. The fast moving average crosses down the slow moving average Adaptive Laguerre Filter ALF - Trend bearish
. The curve of the moving average Adaptive Laguerre Filter ALF is in a downward direction (negative angle) - Trend bearish
Moving averages can be used as a level of support or resistance level
Learn more about the rules and trading signals:
Exchange - Trading Laguerre Filter
Analysis Trading
Trade - Example
Exchange
CARREFOUR Action Quote | CA
Time Frame: 5 Minutes - M5
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