Ehler Laguerre RSI Bitcoin Analysis & Ehlers RSI Signals
Developed and Created by John Ehler.
Originally used to trade stocks and commodities.
Ehler RSI uses a 4-Element Laguerre filter to provide a "time distort" such the low frequency components/ bitcoin price spikes are delayed much more than the higher frequency components/constituents. This btcusd indicator enables more smoother filters to be created using short amounts of data.
The Ehlers RSI uses a scale of 0- 100, the center-line is used to generate cryptocurrency signals and the 80/20 levels represents overbought/oversold areas.
Only parameter which can be optimized for this indicator is damping gamma factor, usually 0.5 to 0.85, to best suit your method.
Ehler Laguerre RSI
Bitcoin Analysis and How to Generate Trading Signals
This implementation of the Laguerre RSI uses scale of 0-100.
Bitcoin Crossover Signals
Buy Signal- A buy cryptocurrency signal is derived & generated when the Ehlers RSI crosses above 50 level Mark.
Sell ==22==Trade Signal- A sell cryptocurrency signal gets generated when the Ehlers RSI crosses below the 50 level Mark.
Overbought/Oversold Levels on Bitcoin Indicator
Overbought/Over-sold Levels in Indicator
A typical use of the Laguerre RSI is to buy after it crosses back above the 20 % level & sell after it crosses back below the 80 % level.
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