Ehlers Laguerre RSI Technical Analysis & Ehlers RSI MT5 Indicator

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/forex price spikes are delayed much more than the higher frequency components. This MT5 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 signals & the 80/20 levels represents overbought-oversold areas.

The only parameter that can be optimized for this MT5 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.

Crossover Signals

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

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

Oversold/Overbought Levels on Technical Indicator

Oversold/Overbought Levels on 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.