Ehlers Fisher Transform Indicator
The Ehlers Fisher Transform indicator for MT4 displays high-probability trend reversal zones.
Description
The Ehlers Fisher Transform Indicator for MetaTrader 4 is a leading indicator developed by J.F. Ehlers to detect potential trend reversal zones. It was created with algorithms that are highly sensitive to price reversal zones, which allows it to identify a trend reversal at the early stage.
What is the Ehlers Fisher trading strategy?
The Ehlers Fisher trading strategy is a trading approach that looks for a potential trend reversal when the price attempts to form a bell shaped curve pattern. Thus, the Ehlers Fisher Transform Indicator for MT4 was designed to work in sync with the Ehlers Fisher trading strategy.
The indicator was developed with the Fisher transform line and histogram trend bars that work in synergy to determine the trend direction and reversal zones. Furthermore, the indicator also displays the prevailing trend direction in the market when it continually prints the histogram bars in ascending/descending order.
How to use the Ehlers Fisher Transform Indicator for MT4
The above image shows the market analysis by the indicator for MT4 on the EURUSD pair. The indicator uses the 0.00 center to separate the market trend into bullish and bearish. Therefore, the lime green histogram bars above the 0.00 center line signify bullish bias, for buy signals. Similarly, the pale violet red bars below the centerline depict bearish bias, for sell signals.
Furthermore, the shaded histogram bars depict a buy/sell signal, while the unshaded bars signify a decline in momentum. In other words, the unshaded bars are early signs of a potential trend reversal.
Conclusion
The Ehlers Fisher Transform Indicator for MT4 is an advanced trend reversal indicator that works with the principle of Ehlers FT trading strategy.