Ehlers Laguerre RSI Forex Trading Technical Analysis & Ehlers RSI 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 signals & the 80/20 areas represents overbought/oversold areas.
The only parameter which can be optimized for this technical indicator is damping gamma factor, usually 0.5 to 0.85, to best suit your trading method.
Ehlers Laguerre Relative Strength Index
Forex Trading Technical Analysis & How to Generate Trading Signals
This implementation of the Laguerre RSI uses scale of 0-100.
FX Trading Crossover Signals
Buy Trading Signal- A buy trading signal is generated when Ehlers RSI crosses above 50 level Mark.
Sell 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 and sell after it crosses back below the 80% level.
