Laguerre Indicator revision –Imran Sait Scalping Methodology
Initial compilation 20 Dec 2007
Following is a summary of F.A.Q.’s / comments from the first 150 pages of this thread. It summarises the correct usage of the Lag 1 and Lag 2. I thank all those who asked the questions so that we could have the answers to become better scalpers.
To all who scan these few pages, please feel free to correct or to add, so that we can continue to learn.
Indicator Settings
Laguerre1 ACS1 - Blue (gamma 0.6) – (Moving Average 2) - to take Entry.
Laguerre2 ACS2 - Red (gamma 0.8) - (Moving Average 2) - to take Exit.
Levels: 0.15, 0.85 and 0.45.
Long Trade
Lag 1 is below and crossing above or touching 0.15 and Lag 2 is either Below 0.00 or trying to cross up ( e.g. at 0.15 )
Lag 1 is above 0.45 and climbing up and Lag 2 is either climbing up above 0.30
Both Lag-1 and Lag-2 are at 0.15 and climbing up ( Most Powerful Moves)
Short Trade
Lag 1 is above and crossing down or touching 0.85 and Lag 2 is at 0.85 and dropping down
Lag 1 is below or at 0.45 and dropping down and Lag 2 is either dropping below 0.85
Both Lag-1 and Lag-2 are at 0.45 and dropping down (Most Powerful Moves)
- When the Lags are pointing in opposite direction, we wait for them to align and then take the trade, if not chances of SL being hit are higher.
- The direction of both the Lags should be in the same direction, not necessary for both to be in same location or same position.
- Also if one lag is below 0.45 and the other is still above, u can take the trade.
- The red laguerre is only for confirmation and for exiting the trade as it always lags behind the blue, but till the red laguerre comes to the bottom or to the top the trade is still on unless u see some major resistance or fibs at those location or EMA's converging.
Q. If you have a situation where the laguerre 1 is dipping below 90 but indicator 2 is at below 45 say, resembling crocodile jaws, this is an invalid entry?
A. No, it will be a valid entry as already lag-2 has made its move down, and if it’s pointing down, it will reach the bottom, so u can take that trade.
Q. I have noticed looking back that quite often when lag 2 is lying flat across the top (above 90) and lag1 is at the bottom but going up to meet lag 2 that price follows. Is this too risky to trade?
A. Yes, because once Lag-2 starts to move, then its going to go down very fast if it’s at the top so better avoid the risk.
Q. On the 5 min chart, at the same time period, lag 1 goes over 0.15 pointing up, just like the 1 min chart, but lag 2 is pointing in the opposite direction, pointing down above 0.45. Wouldn't this normally be a no-go? Or can you trade when lag 1 and lag 2 don't agree?
A.I would have taken the 5min trade only if both the indicators were agreeing, and since u took the trade on the 1min, it does not make a difference if the other time frames are conflicting. Only the time frame in which you took the trade, have to agree.
- If both the Lags have crossed 0.45 levels going downwards, you can enter a short trade.
- If both the Lags have crossed 0.45 levels going upwards, you can enter a Long trade.
Q. There are plenty of times where lag1 is good for entry but lag 2 is slow to come back down or up so they don't agree. In that situation should I not trade?
A. Lag1 is for entry, and even if lag 2 takes time to come up or down, you can still take the trade. Just see that the lag 2 is not too much time below and if on 1 min and 5 min, its matter of time lag 2 will follow lag 1.