Display posts from previous
Sort by

Re: MT5 Ehler's indicators

53 by mahdinik200
Banzai wrote: Fri Dec 05, 2025 8:07 pm The Continuation Index

Code: Select all

https://www.tradingview.com/script/5ZrOut79-TASC-2025-09-The-Continuation-Index/
----------------------------------------------------------------------------------------------------------------------
█ OVERVIEW
This script implements the "Continuation Index" as described by John F. Ehlers in the September 2025 edition of TASC's Trader's Tips. The Continuation Index uses Laguerre filters (featured in the July 2025 edition) to provide an early indication of trend direction, continuation, and exhaustion.

█ CONCEPTS
The idea for the Continuation Index was formed from an observation about Laguerre filters. In his article, Ehlers notes that when price is in trend, it tends to stay to one side of the filter. When considering smoothing, the UltimateSmoother was an obvious choice to reduce lag. With that in mind, The Continuation Index normalizes the difference between UltimateSmoother and the Laguerre filter to produce a two-state oscillator.
To minimize lag, the UltimateSmoother length in this indicator is fixed to half the length of the Laguerre filter.

█ USAGE
The Continuation Index consists of two primary states.
  • +1 suggests that the trader should position on the long side.
  • -1 suggests that the user should position on the short side.
Other readings can imply other opportunities, such as:
  • High Value Fluctuation could be used as a "buy the dip" opportunity.
  • Low Value Fluctuation could be used as a "sell the pop" opportunity.
█ INPUTS
By understanding the inputs and adjusting them as needed, each trader can benefit more from this indicator:
  • Gamma: Controls the Laguerre filter's response. This can be set anywhere between 0 and 1. If set to 0, the filter’s value will be the same as the UltimateSmoother.
  • Order: Controls the lag of the Laguerre filter, which is important when considering the timing of the system for spotting reversals. This can be set from 1 to 10, with lower values typically producing faster timing.
  • Length: Affects the smoothing of the display. Ehlers recommends starting with this value set to the intended amount of time you plan to hold a position. Consider your chart timeframe when setting this input. For example, on a daily chart, if you intend to hold a position for one month, set a value of 20.
----------------------------------------------------------------------------------------------------------------------
Thank you so much man 👏👏👏🙏
These users thanked the author mahdinik200 for the post:
Banzai

Re: MT5 Ehler's indicators

54 by mahdinik200
Banzai wrote: Fri Dec 05, 2025 8:07 pm The Continuation Index

Code: Select all

https://www.tradingview.com/script/5ZrOut79-TASC-2025-09-The-Continuation-Index/
----------------------------------------------------------------------------------------------------------------------
█ OVERVIEW
This script implements the "Continuation Index" as described by John F. Ehlers in the September 2025 edition of TASC's Trader's Tips. The Continuation Index uses Laguerre filters (featured in the July 2025 edition) to provide an early indication of trend direction, continuation, and exhaustion.

█ CONCEPTS
The idea for the Continuation Index was formed from an observation about Laguerre filters. In his article, Ehlers notes that when price is in trend, it tends to stay to one side of the filter. When considering smoothing, the UltimateSmoother was an obvious choice to reduce lag. With that in mind, The Continuation Index normalizes the difference between UltimateSmoother and the Laguerre filter to produce a two-state oscillator.
To minimize lag, the UltimateSmoother length in this indicator is fixed to half the length of the Laguerre filter.

█ USAGE
The Continuation Index consists of two primary states.
  • +1 suggests that the trader should position on the long side.
  • -1 suggests that the user should position on the short side.
Other readings can imply other opportunities, such as:
  • High Value Fluctuation could be used as a "buy the dip" opportunity.
  • Low Value Fluctuation could be used as a "sell the pop" opportunity.
█ INPUTS
By understanding the inputs and adjusting them as needed, each trader can benefit more from this indicator:
  • Gamma: Controls the Laguerre filter's response. This can be set anywhere between 0 and 1. If set to 0, the filter’s value will be the same as the UltimateSmoother.
  • Order: Controls the lag of the Laguerre filter, which is important when considering the timing of the system for spotting reversals. This can be set from 1 to 10, with lower values typically producing faster timing.
  • Length: Affects the smoothing of the display. Ehlers recommends starting with this value set to the intended amount of time you plan to hold a position. Consider your chart timeframe when setting this input. For example, on a daily chart, if you intend to hold a position for one month, set a value of 20.
----------------------------------------------------------------------------------------------------------------------
Thank you so much man 👏👏👏🙏
These users thanked the author mahdinik200 for the post:
Banzai

Re: MT5 Ehler's indicators

55 by Banzai
Laguerre Filters (on chart)

based on a TradingView indicator:

Code: Select all

https://www.tradingview.com/script/6QWQYUT8-TASC-2025-07-Laguerre-Filters/
For MT4, please go here:
post1295577309.html#p1295577309

========================================================================
█ CONCEPTS

As Ehlers explains in his article, the Laguerre filter is a form of transversal filter. A transversal filter calculates an output signal using a tapped delay line. It creates multiple delayed versions of an input signal, applies weight to each delay, and then calculates their sum to generate the filtered result.

The Laguerre filter's structure relies on Laguerre polynomials — solutions to a differential equation solved by Edmond Laguerre in the 1800s. When Ehlers analyzed the formula for these polynomials on discrete systems (e.g., financial time series), he found that the first term's expression corresponds to an EMA response, and all subsequent terms correspond to an all-pass response. In contrast to other filter types, an all-pass filter produces phase shift (i.e., delay) in an input signal's components without affecting its amplitude.

Ehlers observed that these characteristics of Laguerre polynomials make them suitable for use in a transversal filter structure, and thus the Laguerre filter was born. However, he notes that EMAs are not great filters in general. As such, to improve on the Laguerre filter's design, Ehlers modified it by replacing the EMA term with his UltimateSmoother filter. The resulting Laguerre filter has significantly reduced lag, achieving a tighter response to market fluctuations while maintaining smoothness. Ehlers suggests that traders can analyze crossings between the UltimateSmoother and this Laguerre filter, or those between two Laguerre filters of different order, for helpful buy and sell signals.

In addition to the Laguerre filter, Ehlers derived a smooth, low-lag oscillator based on the difference between the first and second terms in the modified filter structure, scaled by the root mean square (RMS). The resulting oscillator provides an alternative filtered representation of market data, which can help traders identify swing and mean-reversion signals.


█ USAGE

This indicator calculates both the Laguerre filter and the Laguerre oscillator described in Ehlers' article. It displays the Laguerre filter on the main chart pane and the oscillator in a separate pane.

Users can control the behavior of the filter and oscillator with the inputs in the "Settings/Inputs" tab:
  • The "Period" input defines the critical period of the UltimateSmoother used in the Laguerre filter and oscillator calculations. Its default value is 30.
  • The "Gamma" input determines the weighting behavior of the Laguerre filter and oscillator. It accepts a positive value between 0 and 1. Use a lower value for quicker responsiveness to market changes, and a higher value for trends. The default value is 0.5.
  • The "RMS length" input determines the length of the RMS calculation for oscillator normalization. The default value is 100 bars.
========================================================================
So how do you trade?
If a complete candle is above the line, go LONG/BUY


Post Reply Attachments 110

Return to “MT5 Indicators”