Ehler Fisher Transform Analysis MT5 Indicator

Developed by John Ehlers,

Originally used to trade Stocks and Commodities Market.

Ehler Fisher Transform has two lines, the Fisher Transform line & the signal line: signals are generated when there's a crossover of these 2 lines which looks like the stochastic oscillator.

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

This MT5 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

Technical Analysis & 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 technical indicators, it gives many false signals and it is prone to whipsaws, it is therefore recommended to trade it in combination with other MT5 Indicators.