15 Min EUR/JPY CHART
For this trade I have used the Laguerre RSI indicator with a filter line on the screen as well as an arrow indicating that the price has crossed below the filter line. I have also used the qqe indicator to confirm the short trade. There is also a stochastic histogram and colour MACD to confirm the direction. The daily pivots are also used to confirm the entry and to provide targets to exit the trade.
The vertical red line on the left is the entry point for the trade. Price dropped below the Laguerre filter line and the red arrow confirmed the market was about to go short. The fast laguerre line crossed short below the 0.85 line. The qqe line also crossed short and so did the stochastic and MACD. Price also crossed below the up trend line. With all the indicators in sync we entered short at 165.69 The fast laguerre also crossed below the 0.85 line and qqe crossed through the 50% line further confirming the strong down trend.
The vertical red line on the left is the entry point for the trade. Price dropped below the Laguerre filter line and the red arrow confirmed the market was about to go short. The fast laguerre line crossed short below the 0.85 line. The qqe line also crossed short and so did the stochastic and MACD. Price also crossed below the up trend line. With all the indicators in sync we entered short at 165.69 The fast laguerre also crossed below the 0.85 line and qqe crossed through the 50% line further confirming the strong down trend.
15 Min EUR/JPY Meta Trader chart.
Price continued to fall throughout the day and eventually we exited the trade at 163.63 for 300 pips just before price crossed back above the Laguerre filter line.
None of the above indicators are standard with the Meta Trader charting but all are freely available as downloads
The Laguerre RSI was introduced by John Ehlers in his book “Cybernetic Analysis for stocks and futures” It uses a Laguerre filter to provide a “time warp” so that the low frequency components are delayed more than the high frequency components, enabling much smoother filters to be created using less data.
The Laguerre RSI was introduced by John Ehlers in his book “Cybernetic Analysis for stocks and futures” It uses a Laguerre filter to provide a “time warp” so that the low frequency components are delayed more than the high frequency components, enabling much smoother filters to be created using less data.
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