The Laguerre Average was discovered by John .
It's a newer type of averaging that is meant to take out as much of the inherent lag that your typical and SMA's give at the start of a major trend change.
So what you get is an average that turns more quickly at major trend changes, and doesn't get tripped up on the noise (as much).
Simply use this in place of or averages, and integrate with your trading style!
By changing the gamma, you change the "length", play with it to see how the average reacts to different inputs, find something you like and run with it!
You can turn off the trend change dots if desired.
Grab the code here: http://pastebin.com/kiMNGrkZ
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study(title = "TheLark: Laguerre Moving Average", shorttitle="TheLark LMA", overlay=true) //•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•// // // // LAGUERRE MA BY THELARK // // ~ 2-11-14 ~ // // // // •/• // // // // https://www.tradingview.com/u/TheLark // // (please do not remove this heading) // // // //•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•/•// // The Laguerre Average was discovered by John Ehlers. // It's a newer type of averaging that is meant to take out as much of the // inherent lag that your typical EMA and SMA's give at the start of a major trend change. // So what you get is an average that turns more quickly at major trend changes, // and doesn't get tripped up on the noise (as much). //setups h = high l = low //inputs Gamma = input(0.77) sd = input(true, title="Show dots?") //calc lag(g) => p = (h + l)/2 L0 = (1 - g)*p+g*nz(L0) L1 = -g*L0+nz(L0)+g*nz(L1) L2 = -g*L1+nz(L1)+g*nz(L2) L3 = -g*L2+nz(L2)+g*nz(L3) f = (L0 + 2*L1 + 2*L2 + L3)/6 f //plots lma = lag(Gamma) col = lma > lma ? #0094FF : #FF3571 up = lma > lma ? 1 : 0 down = lma < lma ? 1 : 0 plot(lma,linewidth=2,color=col) plot(sd and cross(up,down) ? lma : na,style=circles, linewidth=4, color=col )