Laguere Minus Di - VertexFX Indicator

Laguerre Minus Di is a powerful VertexFX client side VTL indicator that generates only SELL signals. It identifies bearishness in the markets and thereby provides timing for SELL signals.
The Laguerre Minus DI (Laguerre -DI) and its complement, the Laguerre Plus DI (Laguerre +DI) are based upon the Average Directional Index (ADX) indicators, and the PDI (Plus Directional Movement Index) and the MDI (Minus Directional Movement Index) components.
In the first step, we calculate the ADX, the PDI (Plus DI) and the MDI (Minus DI) components of the ADX over the PERIOD bars. In the next step we use the Laguerre digital filter method to smooth the Minus DI component using the GAMMA smoothing components.
The Laguerre RSI is calculated by dividing the sum of up (positive) changes in the Minus DI by the sum of the down (negative) changes in the Minus DI over the PERIOD number of bars. The Minus DI component of the ADX is a strong indicator of bearishness. By using a Laguerre RSI filter on this Minus DI and smoothing it over the recent PERIOD bars using the GAMMA smoothing constant, it eliminates the lag and provides excellent SELL signals.
When the market is rising, the indicator is falling since the MDI component is falling. When the market starts stalling and moves sideways at the end of its bullish moves, the indicator level rests at the zero level. Finally, when the market starts falling, the MDI increases, which in turn causes the indicator to rise in value.
BUY - This indicator does not provide BUY trades. It provides only SELL trades.
SELL - Enter SELL trade when the indicator value has risen above 0 after having stayed at zero level for atheist two candles. Do not enter SELL trade if candle has opened with a gap-down.