Ehlers Laguerre RSI Analysis & Ehlers RSI Trading Signals

Developed by John Ehlers.

Originally used to trade and commodities.

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 stock 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.

Only parameter which can be optimized for this indicator is damping gamma factor, usually 0.5 to 0.85, to best suit your method.

Ehlers Laguerre RSI

Trading Analysis & Generating Signals

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

Stocks Cross-over Trading Signals

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

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

Overbought/Oversold Levels on Technical Indicator

Overbought/Oversold Levels on 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.