Laguerre MetaTrader 4 Divergence indicator — a completely custom indicator that doesn't rely on the standard MT4 indicators.
It shows the weighted trendline in the separate window of the chart and regular and hidden divergence by Slow Laguerre and Fast Laguerre.
It can be used for easy entry and exit signals.
The trend is determined by the Slow Laguerre indicator.
Fast Laguerre is built from Slow Laguerre and serves to look for divergences with respect to Slow Laguerre.
Regular bear divergence - determined on the uptrend Slow Laguerre and is a reversal signal, it means a signal and a down arrow.
Hidden bear divergence - is defined on the Slow Laguerre downtrend and is a signal to continue the Slow Laguerre trend, that is, the continuation of the downtrend, so the signal and the arrow are also drawn down.
With bull divergence vice versa.
Features of the divergence search algorithm
1.Bear-divergence we are searching only for extremes and Laguerre values above the specified Upper Level. For other extremes, divergences are ignored.
2.Bull-divergence we are searching only for extremes and Laguerre values below the specified Lower Level. For other extremes, divergences are ignored.
3. Only those divergences whose length is greater than or equal to Min Bars and less than or equal to Max Bars are shown. The rest are ignored.
4. If a divergence length of, for example, 20 bars is found on bar i, then all other divergences on bar i with a smaller length are ignored.
5. The search for a new divergence always starts from the bar of the last divergence found. For example, if regular bear-divergence is found and its right point is on bar 50, then the search for a new regular bear-divergence will start from bar 50, that is, the left point of the new regular bear-divergence cannot be to the left of bar 50.
6.Divergence is ignored if the indicator line, for example, Slow Laguerre, crosses the divergence line between the extremes found.
The indicator is available for MT4 platform. Input parameters: gamma (default = 0.7) — multiplier that is used in the line's levels calculation.
The higher it is the smoother is the line. CountBars (default = 950) — the maximum number of bars for which to calculate this indicator. Set as high as possible if you don't experience performance problems.
Parameters Filters Qty - number of filters Laguerre. You can set from 1 to 255 filters. Standard version has 4
Applied Price adjustable only for Slow Laguerre. Fast Laguerre calculates from Slow Laguerre.