Ehler Laguerre RSI Analysis and Ehlers RSI Signals
Created by John Ehler.
Originally used to trade stocks and commodities.
Ehler 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 more smoother filters to be developed 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.
Ehler Laguerre RSI
Analysis and How to Generate Signals
This implementation of the Laguerre RSI uses a scale of 0-100.
XAUUSD Cross-over Signals
Buy Gold Signal- A buy signal gets generated when Ehlers RSI crosses above the 50 level Mark.
Sell Trading Signal- A sell signal gets generated when Ehlers RSI crosses below the 50 level Mark.
Overbought/Over-sold Levels in Indicator
Overbought/Over-sold Levels in Indicator
A typical use of the Laguerre RSI is to buy after it crosses back above the 20 % level & sell after it crosses back below the 80% level.
Get More Topics and Guides:
- How Do You Draw Downwards Channel in MT4 Chart?
- Entry Stop Gold Orders: Buy Stop Gold Order vs Sell Stop Gold Order
- Technical Analysis Fractals Indicator Buy Forex Signal
- Gold System Tutorial Lesson for Beginners
- Gold Market Opening Time
- Example of How to Generate Trading Signals with This XAU/USD Strategy
