Ehlers Laguerre RSI Commodities Technical Analysis and Ehlers RSI Trading Signals

Developed by John Ehlers.

Ehlers RSI uses a 4-Element Laguerre filter to provide a "time distort" such that the low frequency components/ commodities price spikes are delayed much more than the higher frequency components. This commodity 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 commodities trading signals and the 80/20 areas represents overbought-oversold levels.

Only parameter that can be optimized for this technical indicator is a damping gamma factor, usually 0.5 to 0.85, to best suit your trading method.

Ehlers Laguerre Relative Strength Index

Commodity Technical Analysis & Generating Trading Signals

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

Commodity Trading Crossover Trading Signals

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

Sell Trading Signal- A sell commodity signal is generated when the Ehlers RSI crosses below the 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 and sell after it crosses back below the 80% level.