The Laguerre Filter RSI (LFRSI) was created by John Ehlers. It applies the simple RSI calculation to the result of the Laguerre Filter (see the Laguerre Filter indicator for more information). Note that the excursions of the RSI are typically lock-to-lock and that the recovery is rapid at each major price reversal. A typical use of the Laguerre RSI is to buy after the line crosses back over the 20% level and sell after the price crosses back down over the 80% level. Of course, just as with the conventional RSI, more elaborate trading rules can be created.
This is a companion discussion topic for the original entry at https://www.optuma.com/kb/optuma/tools/ehlers/laguerre-rsi