Ehlers Laguerre Relative Strength Index

Written by Miroslav Marinov

Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: September 15, 2025

This indicator is a variation of the popular Relative Strength Index (RSI). Designed by John Ehlers, the Laguerre Relative Strength Index attempts to avoid the whipsaws and lag that the traditional RSI tends to exhibit. The Laguerre Relative Strength Index uses a four-element filter to provide a ‘time warp’, so that low-frequency elements are delayed far more than high-frequency elements. This results in a more reactive indicator that produces fewer whipsaws than the traditional RSI.

Similar to the RSI, the Laguerre Relative Strength Index generates trading signals when it crosses its overbought and oversold levels. The oscillator’s original scale ranges from 0 to 1. A buy signal is generated when the Laguerre Relative Strength Index falls below 0.15 and then moves back above it. A sell signal is generated when the Laguerre Relative Strength Index climbs above 0.85 and then moves back below it.

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If the oscillator remains flat above its overbought level (0.85), it indicates that the bullish trend is strong. If it remains flat below its oversold level (0.15), it signals a strong bearish trend.

Chart Source: VT Trader