Ehler Fisher Transform Bitcoin Trading Analysis & Ehlers Fisher Transform Signals
Created by John Ehler,
Originally used to trade Stocks & Commodities Market.
Ehler Fisher Transform has 2 lines, the Fisher Transform line & the trading signal line: signals are derived & generated when there is a crossover of these 2 lines which looks like the stochastic oscillator trading indicator.
It was designed to define major bitcoin price reversals using the rapid response time and sharp, distinct turning points making it a leading indicator.
This btcusd indicator is based on the assumption that bitcoin trading prices do not have a Gaussian probability density function (bell shaped curved movement), but that by normalizing bitcoin price and applying the Fisher Transform you as a trader can create a nearly Gaussian probability density function on the lines drawn.
Ehler Fisher Transform
Bitcoin Crypto Currency Analysis and Generating Signals
signals can be generated with pin-point accuracy by using the cross-over points of the Fisher Transform and its signal-line.
However, this Ehlers Fisher Transform isn't very accurate, as with all leading indicators, it gives many false trading signals & it is prone to whipsaws, it is therefore recommended to trade it in combination together with other indicators.
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