Ehlers Laguerre RSI Stocks Technical Analysis and Ehlers RSI Stocks Signals

Developed by John Ehlers.

Ehlers RSI uses a 4-Element Laguerre filter to provide a "time distort" such that the low frequency components/ stocks price spikes are delayed much more than the higher frequency components. This stocks 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 stock 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

Stocks Technical Analysis and Generating Stock Signals

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

Stocks Trading Crossover Stock Trading Signals

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

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

Oversold/Overbought Levels on Stocks Trading Indicator

Oversold/Overbought Levels on Stock Trading 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.