Ehlers Laguerre RSI Technical Analysis and Ehlers RSI Forex 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/price spikes are delayed much more than the higher frequency components. This 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 Forex trading signals & the 80/20 levels represents overbought/oversold levels.
The only parameter that can be optimized for this indicator is a damping gamma factor, usually 0.5 to 0.85, to best suit your trading method.
Ehlers Laguerre Relative Strength Index
Forex Technical Analysis & How to Generate Signals
This implementation of the Laguerre RSI uses scale of 0-100.
Forex Crossover FX Trading Signals
Buy Forex Signal- A buy signal is generated when the Ehlers RSI crosses above 50 level Mark.
Sell FX Trading Signal- A sell signal is generated when Ehlers RSI crosses below 50 level Mark.
Oversold/Overbought Levels on Forex Indicator
Oversold/Overbought Levels on FX 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.
