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The Ehlers Fisher Transform indicator is a trading algorithm based on the functioning of the calculations of several forex indicators. Their joint calculations allow creating an algorithm that helps to determine the strength and direction of the current market trend, which in turn determines the current trade. It is presented in the lower window of the price chart in the form of a solid line that changes color and direction when determining the direction of the current market movement. Taking into account the values of the indicator line, the current trend is determined, and a certain trade is opened based on it.
The Ehlers Fisher Transform indicator works equally effectively with any currency pair on any time frame, so their choice does not matter.
Input parameters
The settings of the Ehlers Fisher Transform indicator consist of several sections, which in turn are responsible for its general functioning. The Input parameters section is used to change the values of its technical work, the Colors section is used to change its visualization, which includes the color change, and in order to add signal levels into the indicator window, the Levels section is used.
-Period - value of the indicator calculation period. The default value is 14.
-Price - type of the price to which the indicator calculations are applied. By default, it has the Close price value.
Indicator signals
Thanks to a very clear and simple visualization, the Ehlers Fisher Transform indicator is very easy to use. When trading, it is important to consider only the direction and color of its line, which in turn will indicate the direction of the current trend. If the indicator detects an upward trend, long positions are opened, in a downward trend - short positions. When the trend direction changes, in both cases, trades are closed.
Signal for Buy trades:
- The indicator line has a color with a growth value and moves in an upward direction.
Upon receipt of such a condition, a buy trade can be opened on the signal candle due to the presence of an upward trend in the current market. Such a trade should be closed upon receiving a return signal from the indicator, namely, when the color and direction of its line changes. At this moment, the current trend may change, which in turn will allow considering the opening of new trades.
Signal for Sell trades:
- The indicator has a color with a fall value and is directed from top to bottom.
A sell trade can be opened immediately upon receipt of such a condition characterizing the presence of a downward trend in the market. When the direction of the current trend changes, namely when an opposite signal is received from the indicator, the current trade should be closed and opening new ones should be considered.
Conclusion
The Ehlers Fisher Transform indicator is quite profitable due to its accurate signals that provide correct information about the current market. In addition, the indicator is very easy to use and is suitable even for beginners who can strengthen their trading skills with preliminary practice on a demo account.
