> For the complete documentation index, see [llms.txt](https://help.za.velocitytrade.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.za.velocitytrade.com/web-platform/technical-indicators/oscillators/rsi-laguerre.md).

# RSI Laguerre

This technical indicator was created by John F. Ehlers and is a modified version of the Relative Strength Index (RSI). For the first time, this indicator was published by John F. Ehlers in Cybernetic Analysis For Stocks And Futures.

As in the case of many other oscillators, the main method of this indicator use is opening of buy orders after the level of indicator crosses above the level of 20 and opening of sell orders after the indicator crosses below the level of 80.

The major parameter of the RSI Laguerre indicator is the alpha factor which equals 1 by default. It is important to note when the value which is less than this level (for instance, 0.5) is used, the indicator suggests rather aggressive trading with a big number of trading signals, which negatively influences the outcomes. High values of the indicator’s factor (more than 85) are unadvisable as the overvaluation of the parameter may lead to delays in the work of the indicator.

The relevant distinguishing characteristic of the RSI Laguerre technical indicator is the situation when the indicator line takes minimal or maximal value moving strictly in a horizontal way; it means powerful directed movement. Thus, if the indicator equals 1 and moves horizontally, strong trend movement, which is pointed up, prevails on the market. If the indicator equals zero and moves horizontally, then one should open sell deals in the developing downward movement.

The RSI Laguerre indicator plots the weighted RSI indicator value filtered with a Laguerre filter. The sensibility of the Laguerre filter is also self-adjusted with the “fractals energy” in the case of this particular indicator.

## Main parameters

* Alpha factor, 1 by default;
* Source price, available values: Close, Open, High, Low, Typical, Medium, Weighted;
* Fractals energy length, 13 by default.

The indicator itself looks as follows on the chart:

![](/files/-MgF4RonwLwBUN5t220d)


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://help.za.velocitytrade.com/web-platform/technical-indicators/oscillators/rsi-laguerre.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.