Ehlers Laguerre RSI CFD Technical Analysis and Ehlers RSI CFD Signals

Developed by John Ehlers.

Originally used to trade stocks and commodities.

Ehlers RSI uses a 4-Element Laguerre filter to provide a "time distort" such that the low frequency components/ cfd price spikes are delayed much more than the higher frequency components. This cfds technical indicator enables much 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 cfds trading signals & the 80/20 levels represents overbought-oversold areas.

The only parameter which can be optimized for this technical indicator is damping gamma factor, usually 0.5 to 0.85, to best suit your trading method.

Ehlers Laguerre RSI

CFDs Technical Analysis and Generating CFD Signals

This implementation of the Laguerre RSI uses scale of 0-100.

CFDs Trading Crossover Trading Signals

Buy CFDs Signal- A buy signal is generated when Ehlers RSI crosses above the 50 level Mark.

Sell Trading Signal- A sell signal is generated when the Ehlers RSI crosses below 50 level Mark.

Overbought/Oversold Levels on Technical Indicator

Overbought/Oversold Levels on Indicator

A typical use of the Laguerre RSI is to buy after it crosses back above the 20% level and sell after it crosses back below the 80% level.