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Ehlers Laguerre RSI Technical Analysis and Ehlers RSI Forex Trading 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 and 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 Indicator Analysis - Ehlers Laguerre RSI Technical Indicator

Ehlers Laguerre Relative Strength Index

Technical Analysis and Generating Signals

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

Crossover Signals

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

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

Ehlers Laguerre Relative Strength Index Technical Indicator Analysis - Ehlers Laguerre RSI Indicator

Oversold/Overbought Levels

Oversold/Overbought Levels

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.

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