Ehler Laguerre RSI Oil Technical Analysis and Ehlers RSI Oil 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/ crude crude oil price spikes are delayed much more than the higher frequency components. This oil 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 oil signals & 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

Oil Technical Analysis & Generating Crude Oil Trading Signals

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

Oil Trading Crossover Oil Trading Signals

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

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

Oversold/Overbought Levels on Crude Oil Indicator

Oversold/Overbought Levels on Oil 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.