Fisher Transform - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources

This indicator was inspired by John Ehlers' article "Using the Fisher Transform" published in the November 2002 issue of Technical Analysis of Stocks and Commodities magazine.

The indicator is based on the assumption that prices do not have a Gaussian density, but a similar density can be created by normalizing prices and applying the Fisher transformation. Therefore, a price reversal will definitely occur at the top of the swing. The recommended period is equal to 10.

The Fisher Indicator calculates the lowest and highest price levels in history, determines trend direction and predicts its reversal. Fisher is particularly useful as a basic trend indicator in trading systems. A positive value on Fisher is a first-time buy signal, while a negative value forms a sell signal. It is possible to find the optimal period for the calculation of maximum and minimum values ​​(the only parameter of the Fisher indicator) to avoid false signals.

It is also possible to use Fisher (red) and trigger (blue) line crossovers, similar to stochastic oscillator signals.

See also the article "Application of Fisher Transform and Inverse Fisher Transform to Market Analysis in MetaTrader 5" .

Attachment download

📎 fishertransform.mq5 (6.99 KB)

Source: MQL5 #537