Laguerre Supertrend Clouds is an indicator created in October 2017 by developer Jay Jantz. The Laguerre Supertrend Clouds indicator functions by adding an algorithm of Adaptive Laguerre averages and alerts to the Supertrend indicator. As its name suggests, Laguerre Supertrend Clouds (LSC) is a trend indicator that works best in trend markets.
The Supertrend is a very popular indicator for intraday and daily trading, having the ability to be used in any time frame. Incorporating the Laguerre equation into this tool creates more accurate trend detection and softer filters. The Laguerre Supertrend Clouds indicator uses the improved version of the Adaptive Laguerre equation (which applies Laguerre polynomials of any order), to create Supertrend trusted clouds that adjust over time, giving more information on the strengths of the growing and decreasing price trends.
An alert is sent whenever the asset price closes above the attack line, and a trade is placed whenever the asset price closes below the attack line. These crosses stand out for not painting arrows. Alerts, including email, direct messages, and sound alerts can be turned on or off to alert the user to these events. Note that the recipient’s email and SMTP information must be specified in the Metatrader 4 options before using email alerts.
The most important parameters are:
-Supertrend Number Bars used for calculation (Default=10) – the number of bars used to calculate Supertrend.
-Supertrend Multiplier (Default=4.0) – multiplication factor to calculate the real mean range in Supertrend. A higher value equals fewer signals, a lower value equals more signals but a higher probability of false positive.
-Length of Laguerre clouds (Default=10) – The number of bars used to calculate Laguerre clouds.
-Laguerre cloud order (Default=4) – Laguerre polynomial order [advanced option].
-Adaptive Factor Smoothing Period (Default=5) – A period to smooth the Gamma Laguerre adaptive factor [advanced option].
-Adaptive Factor Smoothing Method (Default=Median) – Averaging method used to smooth the gamma adaptive factor [advanced option].
-Alert when the price crosses the attack border LSC – True equals alerts are allowed, false equals all alerts are paused.
-Accept warning alerts, disable future alerts – When true, message warning alerts will be disabled.
This indicator is available on the MQL market at a price of 30 USD. It can also be rented for a low, low price of 14 USD per year. A free trial version is also available.
In conclusion, we are talking about a well-known indicator (Supertrend) that is now improved in this new version. The version appears to have been well improved given the positive ratings of users who have already tested this indicator.