Ehler Laguerre RSI Technical Analysis and Ehlers RSI Trading Signals
Developed 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 low frequency components i.e. price spikes are delayed much more than higher frequency components. This indicator enables more smoother filters to be created using short amounts of data.
The Ehler RSI uses a scale of 0- 100, the center line is used to generate signals & the 80/20 levels represents overbought-over-sold levels.
Only parameter which can be optimized for this indicator is damping gamma factor, usually 0.5 to 0.85, to best suit your trading method.
Ehlers Laguerre Relative Strength Index
Technical Analysis and Generating Signals
This implementation of Laguerre RSI uses a scale of 0 - 100.
Indices Crossover Signals
Buy Signal- A buy signal is generated when the Ehlers RSI crosses above 50 level Mark.
Sell Signal- A sell signal is derived and generated when the Ehler RSI crosses below the 50 level Mark.
Over-sold/Overbought Levels in Indicator
Over-sold/Overbought 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.
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