Ehler Laguerre RSI Analysis and Ehlers RSI Trading Signals

Developed by John Ehler.

Originally used to trade stocks & commodities.

Ehlers RSI uses a 4-Element Laguerre filter to provide a "time distort" such that the low frequency components/ xauusd 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 signals & the 80/20 areas represents overbought-oversold levels.

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 method.

Ehlers Laguerre RSI

Analysis and How to Generate Signals

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

XAUUSD Cross-over Trading Signals

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

Sell Signal- A sell signal gets generated when Ehler RSI crosses below 50 level Mark.

Overbought/Oversold Levels on Indicator

Overbought/Oversold 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.