Индикатор Форекс Fisher1

Understanding the Fisher Transform Indicator

As noted above, the Fisher Transform Indicator is an indicator used in technical analysis. It was developed by author, trader, and engineer John F. Ehlers. Ehlers became a trader in the mids and created several indicators that are used by traders today.

The Fisher Transform Indicator enables traders to create a Gaussian normal distribution. It converts data that isn't typically normally distributed, such as market prices. In essence, the transformation makes peak swings relatively rare events to help better identify price reversals on a chart.

This technical indicator is commonly used by traders looking for changes and trends in asset prices. More specifically, they generally seek leading signals rather than lagging indicators. Using the Fisher Transform Indicator can help traders understand the movement of asset prices and market conditions.

How to Apply the Fisher Transform Indicator to Trading

The Fisher Transform indicator is unbounded, which means extremes can occur for a long time. An extreme is based on an asset's historical readings. For some assets, a high reading may equal seven or eight, while a low reading may be These values may differ for other assets.

An extreme reading indicates the possibility of a reversal. This should be confirmed when the indicator changes direction. For example, an asset price may drop (or has already started dropping) when the indicator heads lower after reaching an extremely high level with a strong price rise in the asset.

The Fisher Transform Indicator frequently has a signal line attached. This is a moving average (MA) of the indicator's value, so it moves slightly slower than the Fisher Transform line. Some traders use it as a trade signal when the indicator crosses the trigger line. For example, when it drops below the signal line after hitting an extreme high, it could be used as a signal to sell a current long position.

As with many indicators, the Fisher Transform Indicator will provide lots of trade signals—plenty of which are not profitable to follow. Some traders prefer to use the indicator in conjunction with trend analysis. For instance, when the price rises, you can use it for buy and sell signals—not for short-sell signals. During a downtrend, you can use it for short-sell signals and ideas on when to cover.

The Fisher Transform Indicator vs. Bollinger Bands®

These two indicators look very different on a chart, yet both are based on a distribution of asset prices.

Bollinger Bands® use a normal distribution in that they use standard deviation to show when the price may be overextended. Fisher Transform, on the other hand, uses a Gaussian normal distribution.

The Fisher Transform appears as a separate indicator on a price chart, while Bollinger Bands® are overlayed over the price.

Limitations of the Fisher Transform Indicator

Although the Fisher Transform Indicator is a popular tool for technical analysts, there are certain drawbacks to using it. For instance:

• It can be rather noisy at times, even though it intends to make turning points easier to identify. Extreme readings aren't always followed by a price reversal. At times, the price moves sideways or even reverses only a small amount.
• What qualifies as extreme can also be hard to judge, since the levels tend to vary over time. Four may be a high level for years, but readings of eight may start to frequently appear.
• Looking at all of the changes in direction on the Fisher Transform Indicator can help spot short-term changes in price direction. However, the signal may come too late to capitalize, as many of these price moves may be short-lived.
• Asset prices are not normally distributed, therefore attempts to normalize prices could be inherently flawed and may not produce reliable signals.

The Bottom Line

Indicators help technical traders find opportunities in the market. The Fisher Transform Indicator is one of these tools. The indicator allows traders to create a Gaussian normal distribution by converting prices. Among the benefits is being able to spot trends and identify price waves within the trend. Traders should keep in mind that although it is considered a reliable tool, the Fisher Transform Indicator should be used with others to provide a more accurate picture of the market so the potential for loss is minimized.

The Simple Fisher Indicator Forex Strategy, as the name says, is based on the fisher indicator mt4.

This is a straightforward trading system, but in a strong trending market, you can make a lot of pips with it.

Disclaimer: We do not trade using this system, nor do We use the fisher forex indicator.

But some of you may be looking at how to trade with the fisher forex indicator, so We will give you the basic simple rules on how to enter a trade with it.

You may have to adjust the strategy trading rules fo it your thinking.

Currency Pairs: Any

Timeframes: Any

Indicators: Only fisher indicator mt4

Trading Sessions: Preferably, the London and New Your Trading Sessions.

To get more information on how the fisher indicator works, click this link: fisher indicator mt4

A fisher indicator is a histogram that tells you what the market trend is at the moment; it also gives you the entry signal that a new trend is forming and tells you how much strong the trend is.

Buying Rules of The Fisher Indicator Forex Strategy

1. When a fisher forex indicator histogram bar changes from red to green color, at the close of the chart candlestick that causes the green color histogram bar to form, place a buy stop order pips above the last high of that chart candlestick.
2. put your stop-loss order at the nearest support/swing low or if that is too far, put it pips away, depending on the timeframe you are trading
3. The first option is to close the open trade when the opposite signal (sell signal) is generated to make a profit. Or you can use risk: reward(R:R) of and calculate where to place your take profit(TP) order.

Selling Rules of The Fisher Indicator Forex Trading Strategy

• When a fisher forex indicator histogram bar changes from a green color to red, at the close of the chart candlestick that causes the red histogram bar, place a sell stop order pips below the low of that candlestick.
• place your stop-loss order at the nearest resistance/swing high or if that is too far, put it pips away, depending on the timeframe you are trading
• To take a profit, the first option is to close the open trade when the opposite entry signal (buy signal) is generated. Or you can use risk: reward(R: R) of and calculate where to place your take profit(TP) order.

Disadvantages of The Simple Fisher Indicator Forex Trading Strategy

From the above mt4 charts, you can see that the fisher forex indicator works really well in a strong forex trending market, and therein lies the problem: if it is a ranging or sideways forex market, it will not perform well.

Like a moving average indicator, the fisher indicator is lagging. Price moves way forward before it responds to it.

Advantages of The Simple Fisher Indicator Forex Trading Strategy

In strong trending forex markets, if you are trading 1hr timeframe and above, you can easily bag hundreds of profitable pips with this forex trading system.

Don’t think that because it is such a simple forex trading strategy, it does not have its potential.

Testing…Testing…Testing

Remember, comprehensive analysis is strongly suggested, and we advocate backwards and forward testing indicators or systems prior to trading actual funds. We propose conducting your tests on the following five pairs.

If it doesn’t work on these five pairs, chances are it won’t work on other pairs. This is not an absolute, but we’ve found this rule is reliable in most cases.

We’ve added two other pairs to our testing sequence based on feedback we’ve received from our community.  They are the:

BTC/USD (Bitcoin/US Dollar)

XAU/USD (Gold/US Dollar)

Timeframes and Results

In our initial test, we’ll run the Fisher indicator on the EUR/USD, the BTC/USD and XAU/USD using the default settings across the daily and 4-hour timeframes on the MT4 strategy tester. We use the fast method of testing the indicator to get a general idea; however, you may also run the tick-by-tick data set for a more precise result (which takes considerably more time).

As No Nonsense Traders – and therefore Swing Traders, we will not examine shorter time frames in these studies.  We will also run an additional test, using different values for the settings, to analyze which one may work better and examine the following results:

Total trades

Win/Loss ratio

ROI (return on investment)

There are other metrics included in the strategy tester report, which can be compared, but these three metrics provide the necessary gauge to make quick decisions as to the usefulness of a particular indicator and its settings.

Next, for comparison, we’ll explore the following;

Daily – 1 year

4-hour – 3 months

The reason exceptionally long (or short) testing periods are not included is due to changing market conditions, which might return irrelevant information. A balance of statistically significant data is necessary for accurate results.

And the Outcome…

Below are the spreadsheets listing the results from our tests.

*NOTE:  During the three-month period where we tested the XAU/USD (Gold) on the 4-hour time frame, there were no possible combination of settings that returned a positive ROI.  This happens from time to time, and in that case, just move on to another indicator if that&#;s what you trade.  It&#;s not a big deal.  It&#;s just a part of trading and the fact that you know this exists, you&#;ll have the working knowledge that other traders will not be aware of.

Remember, the overall NNFX philosophy of taking profit, risk, and drawdown is that YOU are creating a system which YOU will be trading. Don’t let anybody else take that away from you. Part of the learning process is digging in and doing the work yourself. To learn more about these topics, check out the advanced course!

More to Come

There’s a lot more to come.  If you haven’t signed up on our contacts page or subscribed to the YouTube channel, please consider doing so to receive notifications as we continue to publish helpful, relevant, and informative Forex related material to support your quest to becoming a better trader.

And, now you are aware of another indicator that many traders don’t know or use.

Our only goal is to make you a better trader.

BTW &#; Any information communicated by Stonehill Forex Limited is solely for educational purposes. The information contained within the courses and on the website neither constitutes investment advice nor a general recommendation on investments.  It is not intended to be and should not be interpreted as investment advice or a general recommendation on investment. Any person who places trades, orders or makes other types of trades and investments etc. is responsible for their own investment decisions and does so at their own risk. It is recommended that any person taking investment decisions consults with an independent financial advisor. Stonehill Forex Limited training courses and blogs are for educational purposes only, not a financial advisory service, and does not give financial advice or make general recommendations on investment.

The 1-minute forex scalping strategy with stochastic fisher forex indicator, as the name says, is made up of two forex indicators: stochastic and the fisher forex indicator.

The stochastic forex indicator is simply an oscillator that oscillates up and down between 0 and If the stochastic lines are above the 80 levels, the price is deemed to be overbought, and there is potential for the price to now move down.

If the stochastic indicator lines are below the 20 levels, the price is deemed to be oversold, and one should expect the price to start moving up.

The fisher indicator is a simple histogram indicator that detects the direction and strength of the trend and signals trend changes.

Trading Parameters and Requirements

• the stochastic forex indicator (default settings)and
• the fisher forex indicator (default settings)
• MT4 Currency Pairs To Trade: Low spread currency pairs like EURUSD, GBPUSD, USDJPY, USDCHF, USDCAD, AUDUSD
• Timeframes: 1 minute or even 5 min, or you can also use it on higher timeframes.

Buying Rules

The buying and selling rules are straightforward. Refer to the chart below for the strategy rules to follow.

Let&#;s start with the buying rules first:

1. Fisher Indicator must have a green bar.
2. the stochastic indicator must go below the 20 levels, and the two stochastic indicator lines have crossed over
3. Put a buy market order or place a buy stop order one pip above the high of the candlestick when it closes.
4. Put your stop loss at the nearest swing low or ten pips below the entry price.
5. To take profit, aim for risk to reward. For example, if your stop-loss is ten pips, then aim for a pips profit target.

Selling Rules

• Fisher Indicator must have a red bar,
• The stochastic indicator must go above 80 levels, and the two stochastic indicator lines have crossed over and are starting to go down.
• Put a sell market order or place a sell stop order one pip below the candlestick&#;s low when it closes.
• Put your stop loss at the nearest swing high or ten pips above the entry price.
• To take profit, aim for risk to reward. For example, if your stop-loss is five pips, then aim for a 15 pips take profit target.

Other Forex Scalping Strategies You May Be Interested In

1 minute, analysis, forex, forex strategy, free forex strategy, NON-Repaint, scalping, Scalping Indicator, Scalping Strategy, Stochastic, strategy

FISHER~1 is a mt4 (MetaTrader 4) indicator and it can be used with any forex trading systems / strategies for additional confirmation of trading entries or exits.

(downloadable file FISHER~eunic-brussels.eu contains FISHER~eunic-brussels.eu4 )

Free Download FISHER~1 Mt4 Indicator

How to install FISHER~1 mt4 indicator in forex trading platform metatrader 4?

• Extract the downloaded FISHER~eunic-brussels.eu
• Go to “File menu” in Mt4 trading platform and click “open data folder”. Open Mql4 folder and open the indicators folder.
• Now paste the FISHER~eunic-brussels.eu4 file into indicators folder and restart the MetaTrader 4.

Forex Trading Systems / Strategies using FISHER~1 indicator.

Fisher MetaTrader indicator — is quite a simple histogram indicator that detects the trend's direction and strength and signals about trend changes. It doesn't use any standard MT4/MT5 indicators in its code. Fisher bases its calculations on the maximum and minimum price levels from the previous periods, applying some advanced math calculations to the relations between the current price and the max/min prices. The indicator is available for both MT4 and MT5. This is a "repainting" indicator — it recalculates previous bars when a new bar arrives.

Input parameters

• Period (default = 10) — the period in bars, on which to calculate the maximum and minimum. The higher is the value the fewer false trend change signals occur but the more this indicator lags.

Fisher indicator example

On the chart example above, you see that the upward trends are marked with the green histogram lines, while the downward trends are marked with the red lines. It is easy to trade with this indicator. You can close short positions and go long when the lines' color changes from red to green. You can close long positions and go short when the lines change from green to red. With the default period setting (10), it was very accurate on EUR/USD H1 chart. The problem is, you have to wait a few bars before acting on a signal because it may change due to repainting.

Discussion

Do you have any suggestions or questions regarding this indicator? You can always discuss Fisher with the other traders and MQL programmers on the indicators forums.

Changelog

-

• Refactored MQL4 code.
• Improved performance in MT4.
• Implemented some minor code changes in the MT5 version.