Ehler Fisher Transform Analysis & Ehlers Fisher Transform Trading Signals

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 derived/generated when there a cross-over of these two lines which resembles the stochastic oscillator trading indicator.

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

This 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 as a trader can create a nearly Gaussian probability density function on the lines that are drawn.

Ehlers Fisher Transform Indicator Analysis - Ehlers Fisher Transform Indicator

Ehler Fisher Transform

Analysis and Generating Signals

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

However, this Ehlers Fisher Transform isn't very accurate, as with all leading technical indicators, it gives many false signals and it's prone to whipsaws, it's therefore recommended to use it in combination together with other technical indicators.

Learn More Tutorials:

Trade Gold Trading

Ehler Fisher Transform Analysis & Ehlers Fisher Transform Trading Signals

Analysis and Generating Signals