Laguerre Oscillator
A low-lag trend oscillator derived from Laguerre polynomials and normalized by RMS volatility.
Usage
Use to detect overbought and oversold conditions with very low lag. The single gamma parameter lets you tune it from aggressive to smooth.
Background
Ehlers describes the Laguerre Oscillator in Cybernetic Analysis as measuring the difference between the first and last elements of a 4-element Laguerre filter bank, extracting the high-frequency component as a zero-lag momentum measure.
Parameters
length(default: 30): UltimateSmoother periodgamma(default: 0.5): Smoothing factorrms_period(default: 100): RMS normalization period
Formula
[ L_0 = UltimateSmoother(Close, Length) ] [ L_1 = -\gamma L_0 + L_{0,t-1} + \gamma L_{1,t-1} ] [ RMS = \sqrt{\frac{1}{n}\sum (L_0 - L_1)^2} ] [ Osc = (L_0 - L_1) / RMS ]