Colored Laquerre RSI
Laquerre RSI connected with colored histogram filter is another tool worth to be added to a trader's toolbelt, as it shows the overbought/oversold market states.
”Since this indicator uses only a few data samples, it can be made to be much more responsive to recent price data. More responsiveness translates to faster reaction times in placing the trades and, consequently, improved profitability due to the reduction in signal lag.” - John F. Ehlers, "Time wrap without space travels", creator of this indicator.
Indeed, a different approach in calculation, which relies not on values presented by other indicators but on direct price feed from market, makes this indicator special. Overbought, oversold and center breakout lines are used as strong signals for opening positions. Additional colored filter provides reliability in reading trend start pointers.