Trade Stock Indices

Ehler Fisher Transform Indices Analysis and Ehlers Fisher Transform Trading Signals

Developed and Created by John Ehler,

Originally used to trade Stocks & Commodities Market.

Ehler Fisher Transform has 2 lines, the Fisher Transform line & the signal line: signals are generated/derived when there is a cross-over of these 2 lines which looks like the stochastic oscillator.

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

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

Ehlers Fisher Transform Trading Indicator - Ehler Fisher Transform Analysis

Ehler Fisher Transform

Index Analysis & How to Generate Trading Signals

Trading signals can be generated with pin-point accuracy by using the crossover points of the Fisher Transform and its signalline.

However, this Ehlers Fisher Transform is not very accurate, as with all leading indicators, it gives many false signals & it's prone to whipsaws, it is thenceforth recommended to trade it in combination with other trading indicators.

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