Laguerre RSI

Laguerre RSI delivers the Laguerre RSI in its cleanest form: the source runs through four cascaded filter stages steered by one shared Gamma value, the pairwise gaps between successive stages split into up-pressure and down-pressure, and the pane shows the up-share of the total, scaled 0 to 1. When a move persists, all three gaps lean the same way and the reading pins near 1 or 0 until the move gives out - the oscillator's defining behavior.

How to Trade the Laguerre RSI?

• Pinned above 0.8: a persistent advance in progress, not a stretched market - the aligned play is holding with the move, not fading it.
• Drop back below 0.8: the actionable event after a pinned stretch - an advance-exhaustion cue, covered by the Overbought Exit alert.
• Recovery up through 0.2: the mirror cue for declines, covered by the Oversold Recovery alert.
• Midline side: the line and gradient color bullish above 0.5 and bearish below, a quick bias read between threshold events.

Entries into the extreme zones carry alerts too, so the full cycle - move begins, persists, exhausts - is observable without watching the pane.

Laguerre RSI Settings

• Source (default close): the series feeding the cascade; raw price works best, leaving the smoothing to the cascade itself.
• Gamma (default 0.5): the single damping knob. Lower reacts quicker but noisier; higher smooths harder and holds levels longer, with most tuning landing between 0.5 and 0.8.
• Overbought (default 0.8) and Oversold (default 0.2): decision thresholds whose exits, not entries, carry the signals.
• Gradient Fill (default on) and Threshold Exit Markers (default off): style toggles - the matching alerts fire regardless.

Frequently Asked Questions

How does it compare with the Stochastic RSI?

Both share the 0-1 scale and 0.8/0.2 levels, but they get there oppositely: the Stochastic RSI re-normalizes an already-computed oscillator into a fast, twitchy reading, while this build derives its ratio from a filter cascade and comes out smooth enough to hold a level through an entire move.

Why does the reading sit at 1 or 0 for so long?

By construction: in a one-way move every stage gap points the same direction, the opposite sum starves, and the ratio saturates. The pinning carries the message - persistence - and treating it as a condition to fade is the classic misread.

What happens when the market goes quiet?

When the stages fully compress and total pressure reaches zero, the oscillator holds its prior value rather than snapping to the midline, matching the published handling and avoiding phantom flips in dead tape.