The Inverse Fisher Transform of RSI Signal indicator for MT4 is an oscillator that provides winning buy and sell trend signals.
The indicator appears in a separate MT4 chart window as a blue and red colored oscillator that floats above and below the neutral 0.00 level.
The Inverse Fisher Transform of RSI Signal oscillator can be used in multiple ways.
Buy & Sell Trade Example
- Open a buy position as soon as the blue colored signal line appears on the chart.
- Open a sell position as soon as the red colored signal line appears on the chart.
The Inverse Fisher Transform of RSI Signal indicator can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
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Download the “Inverse fisher transform of RSI.mq4” indicator for MT4
Indicator Chart (GBP/JPY H4)
The picture below shows the Inverse Fisher Transform of RSI Signal mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Inverse Fisher Transform of RSI Signal Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Oscillator
Does the indicator repaint? No.
Inverse Fisher Transform of RSI + TEMA MT4 Intraday Strategy
This strategy combines the Inverse Fisher Transform of RSI MT4 Indicator and the Triple Exponential Moving Average (TEMA) MT4 Indicator to capture intraday trading opportunities.
The Inverse Fisher Transform of RSI provides entry signals: a blue line indicates a buy, and a red line signals a sell.
The TEMA confirms trend direction: a red line shows a bullish trend, while a green line indicates a bearish trend.
Combining these indicators helps traders enter trades with the trend while timing entries effectively.
This strategy works best on M5 and M15 charts, ideal for intraday traders targeting short-term price moves.
Buy Entry Rules
- Confirm that the TEMA shows a bullish trend (red line).
- Wait for the Inverse Fisher Transform of RSI to turn blue, signaling a buy.
- Enter a buy trade at the close of the signal candle.
- Set a stop loss below the most recent swing low or 10–15 pips below the entry.
- Set a take profit at 1:1.5 risk-reward or exit when the Inverse Fisher Transform of RSI turns red.
Sell Entry Rules
- Confirm that the TEMA shows a bearish trend (green line).
- Wait for the Inverse Fisher Transform of RSI to turn red, signaling a sell.
- Enter a sell trade at the close of the signal candle.
- Set a stop loss above the most recent swing high or 10–15 pips above the entry.
- Set a take profit at 1:1.5 risk-reward or exit when the Inverse Fisher Transform of RSI turns blue.
Advantages
- Combines trend confirmation with clear entry signals for higher probability trades.
- Effective on short-term charts for fast intraday trading.
- Simple to follow and suitable for novice and experienced traders.
- Allows early exits when trends reverse, reducing potential losses.
Drawbacks
- False signals may occur in sideways or choppy markets.
- Requires constant monitoring due to fast intraday movements.
- Parameter settings can affect performance, requiring regular review.
- Frequent trading may increase spread and commission costs.
Example Case Study 1: GBP/JPY (M5)
The price was above the TEMA red line, indicating a bullish trend.
The Inverse Fisher Transform of RSI turned blue, triggering a buy trade at 151.200.
Stop loss was set at 151.100.
The trade was closed at 151.400, achieving the take profit within 30 minutes.
Example Case Study 2: EUR/JPY (M15)
The price was below the TEMA green line, indicating a bearish trend.
The Inverse Fisher Transform of RSI turned red, triggering a sell trade at 130.500.
Stop loss was at 130.600.
The trade was closed at 130.200, reaching the take profit target within an hour.
Strategy Tips
- Check higher timeframes (H1) for trend confirmation to improve probability.
- Avoid trading during major news releases to reduce the risk of volatility spikes.
- Regularly adjust indicator settings to adapt to market conditions.
- Always use proper risk management and stick to defined stop loss and take profit levels.
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Download the “Inverse fisher transform of RSI.mq4” indicator for Metatrader 4
