Ehler Laguerre RSI Commodities Analysis & 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/ 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 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

Technical Analysis & Generating Trade Signals

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

Commodity Trading Cross-over Trading Signals

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

Sell Trading Signal- A sell 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.