LRSI + Alpha Filter
Laguerre RSI with custom alpha filtering for cleaner signals
LRSI + Alpha Filter
TradingView Pine Script Indicator
Overview
LRSI + Alpha Filter combines the Laguerre RSI — known for its ability to filter out market noise — with a proprietary alpha filtering algorithm. The result is an oscillator that responds quickly to real trend changes while ignoring minor price fluctuations.
How It Works
The Laguerre transform applies a 4-element filter to price data, creating a smoothed oscillator that inherently reduces lag compared to traditional RSI. Our Alpha Filter adds an adaptive layer that adjusts the gamma coefficient based on recent volatility, making the indicator more responsive in trending markets and more stable in ranging conditions.
Setup Guide
- 1Open TradingView and search for "LRSI + Alpha Filter".
- 2Add the indicator to your chart — it appears in a separate panel.
- 3The default gamma of 0.7 works well for most assets and timeframes.
- 4Adjust the overbought (0.8) and oversold (0.2) levels if needed.
- 5Enable the Alpha Filter (on by default) for the adaptive behavior.
- 6Set up alerts on level crossings for automated trade signals.
| Parameter | Type | Default | Description |
|---|---|---|---|
| Gamma | Float | 0.7 | Laguerre damping factor (0.1-0.9). Lower = more responsive, higher = smoother |
| Overbought Level | Float | 0.8 | Upper threshold for overbought condition |
| Oversold Level | Float | 0.2 | Lower threshold for oversold condition |
| Alpha Filter Enabled | Boolean | true | Enable adaptive alpha filtering |
| Alpha Sensitivity | Float | 0.05 | How aggressively the alpha adapts to volatility |
| Color Zones | Boolean | true | Shade overbought/oversold zones |
Use Cases
Mean Reversion
Buy when LRSI drops below 0.2 and curls up. Sell when it rises above 0.8 and curls down.
Trend Confirmation
Use LRSI staying above 0.5 as confirmation of bullish trend, below 0.5 for bearish.
Divergence Signals
Compare LRSI direction with price action to spot momentum divergences.
Pro Tips
- Gamma of 0.7 is optimal for most use cases. Only adjust if you have a specific reason.
- In strongly trending markets, the oscillator will stay in overbought/oversold zones. This is normal — do not counter-trend trade.
- The Alpha Filter is the key differentiator — keep it enabled.
- Works exceptionally well on 15m and 1H timeframes for forex.
FAQ
What is the advantage over standard RSI?
LRSI responds faster to real trend changes while being more resistant to noise. Combined with the Alpha Filter, it adapts to current market conditions automatically.
What gamma should I use?
0.7 for most assets. Use 0.6 for volatile assets (crypto) and 0.8 for stable assets (forex majors).
Ready to use LRSI + Alpha Filter?
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