Ehlers Fisher Transform MT4 Indicator Signals

Developed by John Ehlers,

Originally used to trade Stocks and Commodities Market.

Ehlers Fisher Transform has two lines, the Fisher Transform line and the signal line: signals are generated when there's a crossover of these two lines which looks like the stochastic MT4 Indicator.

It was designed to define major price reversals using the rapid response time and sharp, distinct turning points making it a leading MT4 Indicator.

This MetaTrader 4 Indicator is based on the assumption that prices do not have a Gaussian probability density function (bell shaped curved movement), but that by normalizing price and applying the Fisher Transform you can create a nearly Gaussian probability density function on the lines drawn.

Ehlers Fisher Transform

MT4 Indicator and Generating Signals

Trading signals can be generated with pin-point accuracy by using the cross-over points of the Fisher Transform & its signal line.

However, this Ehlers Fisher Transform is not very accurate, as with all leading MT4 Indicators, it gives many false signals and it is prone to whipsaws, it is therefore recommended to trade it in combination with other technical MT4 Indicators.