Ehler Laguerre RSI Bitcoin Analysis & Ehlers RSI Trading Signals
Developed by John Ehler.
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 btcusd 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 indicator is damping gamma factor, usually 0.5 to 0.85, to best suit your method.
Ehlers Laguerre RSI
Bitcoin Analysis and How to Generate Signals
This implementation of the Laguerre RSI uses scale of 0-100.
Bitcoin Crossover Trading Signals
Buy Trading Signal- A buy cryptocurrency signal gets generated when the Ehlers RSI crosses above the 50 level Mark.
Sell Trading Signal- A sell cryptocurrency signal gets generated when the Ehlers RSI crosses below the 50 level Mark.
Overbought/Oversold Levels on Bitcoin Indicator
Overbought/Over-sold Levels on Technical 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.
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