Ehler Laguerre RSI Commodity Trading Technical Analysis & Ehlers RSI Trading Signals

Developed by John Ehlers.

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

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

Ehlers Laguerre RSI

Commodity Trading Technical Analysis & How to Generate Trading Signals

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

Commodity Trading Crossover Trading Signals

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

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

Overbought/Oversold Levels on Technical Indicator

Overbought/Oversold Levels on Technical 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.