Ehler Laguerre RSI Bitcoin Analysis & Ehlers RSI 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/ bitcoin 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 cryptocurrency signals and the 80/20 levels represents overbought/oversold areas.

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

Ehlers Laguerre RSI

Bitcoin Analysis & How to Generate Trading Signals

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

Bitcoin Trading Crossover Trading Signals

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

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

Overbought/Oversold Levels on Bitcoin Trading Technical Indicator

Overbought/Oversold Levels on Technical 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.