Ehler Laguerre RSI Technical Analysis & Ehlers RSI Signals
Developed by John Ehler.
Originally used to trade stock and commodities.
Ehler RSI indicator uses a 4 Element Laguerre filter to provide a "time distort" such that low frequency components i.e. price spikes are delayed much more than the higher frequency components. This technical indicator enables much smoother filters to be developed using short amounts of data.
The Ehlers RSI uses a scale of 0- 100, the center line is used to generate signals and the 80/20 levels represents overbought-over-sold areas.
The only parameter which can be optimized for this indicator is damping gamma factor, usually 0.5 to 0.85, to best suit your method.
Ehlers Laguerre Relative Strength Index
Technical Analysis & How to Generate Signals
This implementation of the Laguerre RSI uses scale of 0-100.
Gold Cross-over Signals
Buy Trade 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.
Oversold/Overbought Levels on Indicator
Oversold/Over-bought Levels on Trading 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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