Forex Ehlers Laguerre RSI Expert Advisor Setup - Setting Up Ehlers Laguerre RSI Expert Advisor

Forex Ehlers Laguerre RSI Expert Advisor Setup - Setting Up Ehlers Laguerre RSI Expert Advisor - A Forex trader can come up with an Ehlers Laguerre RSI Expert Advisor based on the Ehlers Laguerre RSI indicator explained below.

Forex Ehlers Laguerre RSI Expert Advisor rules can be combined with other Forex trading indicators to come up with other EA Forex Robots that trade using rules based on two or more indicators combined to form a forex trading system.

Ehlers Laguerre RSI Forex Technical Analysis Forex Trading Signals

Developed by John Ehlers.

Originally used to trade stocks 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 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 Forex trading signals and the 80/20 levels represents overbought/oversold levels.

The only parameter that can be optimized for this indicator is a damping gamma factor, usually 0.5 to 0.85, to best suit your trading method.

Ehlers Laguerre Relative Strength Index - Forex Ehlers Laguerre RSI Expert Advisor Setup

Technical Analysis and Generating Signals

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

Crossover Signals

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

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

Oversold/Overbought Levels - Forex Ehlers Laguerre RSI Expert Advisor Setup

Oversold/Overbought Levels

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.