Ehler Fisher Transform Analysis MT5 Indicator

Created by John Ehler,

Originally used to trade Stocks and Commodities Market.

Ehlers 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 & 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 and its signal line.

However, this Ehlers Fisher Transform isn't very accurate, as with all leading technical indicators, it gives many false signals & it is prone to fake outs, it is therefore recommended to trade it in combination with other MT5 Indicators.