Fisher Indicator is a simple indicator that appears in a separate window of the trading platform as a histogram. In a basis of this indicator put mathematical calculations, built on the ratio of current price to the minimum and maximum with extremes of the price of the previous periods.
Characteristics of Fisher Indicator
- Platform: Metatrader4
- Currency pairs: Any currency pairs (recommended Major)
- Trading Time: Around the clock
- Timeframe: Any, recomended H1 and higher
- Recommended broker: Alpari
Trading rules by the Fisher Indicator
Fisher Indicator, or rather its histogram consists of a pair of colors:
- Green - upward trend
- Red - downward trend
Fisher Indicator in its code does not use any standard MT4/MT5, it uses complex mathematical calculations and determines the strength and future direction of prices, signaling about its variations. This algorithm works equally well on MT4, and on MT5.
Installation of indicators on the trading platform is similar to other indicators. The default setting for RangePeriods is equal to 10 (the period in bars for calculation of minimum and maximum). The higher this value, the less there will be a false signal, but the delay in this indicator will be more.
Trading with this indicator is very simple - when changing the color from red to green, you can open the long position and close short. If the color changes from green to red, the close long positions and open short. Checking the indicator on the H1 graph with EURUSD (with the period of 10 by default) has given a fairly accurate results.
However, the better this indicator used in a pair with additional filters. As the filter can use this Fisher Indicator with a higher period, example, RangePeriods = 55:
In addition to the indicator Fisher_m11, I would also like to offer you a new version of the indicator Fisher Indicator, which in my view earlier reports the change in price direction. This is clearly seen in the image below:
Free Download Fisher Indicator