Laguerre Envelopes is a well-known indicator with the lines based on the algorithm of the Moving Average Laguerre. This shortens delay time and reduces the noise.

Settings

• gamma - smoothing ratio
• Shift - shift
• Applied_Price - price type
• Filters Qty - amount of filters (1-10). The greater the amount, the greater the smoothing.
• Deviation - channel width

The indicator is applied based on the assumption that the price often goes back even after a strong movement. In other words, the price remains balanced most of its time, while buyers and sellers temporarily destabilize it.