Ehler Laguerre RSI CFD Technical Analysis and Ehlers RSI CFD 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/ cfds price spikes are delayed much more than the higher frequency components. This cfd 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 cfd 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

CFDs Technical Analysis and Generating CFDs Signals

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

CFD Trading Crossover Trading Signals

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

Sell Trading Signal- A sell cfd 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.