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The Ehlers Fisher Transform indicator is a trading algorithm based on the use of several Forex indicators, namely the Ehlers and Fisher indicators. Its calculations are aimed at determining the current trend, namely its direction and strength. The indicator is displayed in the lower window of the price chart in the form two lines: the main and the signal, which intersect each other and move in a certain direction relative to the signal level. The current values of the indicator lines serve to determine the market movement, which in turn also allows opening a certain trade in its direction.
The Ehlers Fisher Transform indicator is suitable for functioning on any timeframe, using any currency pairs.
Input parameters
Several sections in the indicator settings are responsible for its operation. To change the values of technical work, use the Input Parameters section, the Colors section to change its general visualization, and to add signal levels to the indicator window, use the Levels section.
-Period - indicator calculation period. The default value is 32.
-Calculation mode - a type of application of indicator calculations. The default value is Don't include current high and low in calculation.
-Price - type of the price to which the indicator calculations are applied. By default, it has the Median price value.
Indicator signals
The Ehlers Fisher Transform indicator is easy to use due to its convenient visualization. To open a certain trade, it should be taken into account the current trend, namely its strength and direction, which are determined by taking into account the color of the main line, general direction, intersection and location relative to the signal level. If the current trend the market is upward, long positions are opened, if the trend is downward, short positions are opened. After a change in the current trend, in both cases, trades are closed.
Signal for Buy trades:
- The indicator lines are moving above the 0 level, the main line has a color with a growth value and is located above the signal line.
Upon receipt of such conditions, a buy trade can be opened on the signal candle. At this moment, an uptrend is determined in the market. Close the trade and consider opening a new one when the trend changes, namely, when the indicator lines cross again.
Signal for Sell trades:
- The indicator lines intersect so that the signal line is higher than the main one, which has a color with a falling value. Both lines are below the 0 level.
A sell trade can be opened immediately upon receipt of such conditions on a signal candle. This will indicate the presence of a downtrend in the market. Upon receipt of the opposite conditions from the indicator, namely, when the trend changes, the trade should be closed and a new one should be considered.
Conclusion
The Ehlers Fisher Transform indicator is a very effective trading algorithm, as its calculations are based on the use of accurate, time-tested indicators. Although the indicator is easy to use, practice on a demo account is recommended before trading on a real deposit.
