Ehler Laguerre RSI Analysis & Ehlers RSI Signals
Created and Developed by John Ehler.
Originally used to trade stock & commodities.
Ehler RSI uses a 4-Element Ehler Laguerre filter to provide a "time distort" such that low frequency components/price spikes get delayed much more than the higher frequency components/constituents. This indicator enables more 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-over-sold levels.
Only parameter which can be optimized for this indicator is damping gamma factor, normally 0.5 to 0.85, to best suit your trading method.
Ehler Laguerre Relative Strength Index
FX Analysis and How to Generate Trading Signals
This implementation of Laguerre RSI uses scale of 0-100.
Forex Crossover Signals
Buy Signal- A buy trading signal is generated/derived when Ehler RSI crosses above 50 level and center Mark.
Sell Signal- A sell signal is generated/derived when Ehlers RSI crosses below the 50 level and center Mark.
Oversold/Overbought Levels in Indicator
Oversold/Over-bought Levels in 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.
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