The Fisher Transform (Fisher_org_v12) indicator that runs on MT4 is a simple crossover trend trading system that works.
The indicator pops up in a separate MT4 chart window as two colored signal lines that cross each other.
Buy & Sell Trade Example
- A buy signal occurs as soon as the blue signal line crosses the red signal line upwards.
- A sell signal occurs as soon as the red signal line crosses the blue signal line upwards.
The Fisher Transform 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.
Free Download
Download the “Fisher_org_v12.mq4” indicator for MT4
Indicator Chart (EUR/USD Daily)
The example chart below displays the Fisher Transform mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Fisher Transform 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: Trend
Does the indicator repaint? No.
MT4 Day Trading Strategy Using Fisher Transform and Magic Dots Indicator
This day trading strategy for MT4 combines the Fisher Transform Indicator with the Magic Dots Forex Signal Indicator to pinpoint high-probability intraday entries.
The Fisher Transform gives clear directional context: when its values are above zero, the market is biased bullish; when below zero, the bias is bearish.
Meanwhile, Magic Dots provides “dot” signals—blue for buy, red for sell—that help time execution.
Using both together helps you trade with trend bias and avoid many false moves.
Why This Strategy Works & Who It’s For
The Fisher Transform is a powerful oscillator that emphasizes extreme price changes and filters noise.
By knowing whether the price is above or below zero, you get a directional bias.
However, that doesn’t tell you exactly when to enter.
That’s where the Magic Dots indicator comes in: its colored dots mark potential turning points.
By combining the bias (Fisher) with the timing (Magic Dots), you filter out many bad entries and focus on better ones.
This is a day trading strategy: it’s meant for trades held from minutes to a few hours, not overnight.
It works best on timeframes such as M15, M30, or H1.
This is for traders who prefer a moderate number of setups per day and like to trade during active sessions (London / New York).
Buy Entry Rules
- The Fisher Transform line (or histogram) must be above zero, signaling bullish bias.
- The Magic Dots indicator must show a blue dot (buy signal) on the current candle.
- Enter the trade at the close of the candle that yields the blue dot (if Fisher is still above zero).
- Set stop loss a few pips below the recent swing low or below the low of the dot candle.
- Set take profit at a risk:reward ratio of 1.5:1 or 2:1, or aim for nearby resistance or pivot levels.
Sell Entry Rules
- Fisher Transform must be below zero, indicating a bearish bias.
- Magic Dots must display a red dot (sell signal) on the current candle.
- Enter at the close of that candle if Fisher remains below zero.
- Put a stop loss a few pips above the recent swing high or above the high of the dot candle.
- Target take profit at 1.5:1 or 2:1 or at a nearby support zone.
Advantages
- Combines directional bias with timed entries to reduce noise.
- Clean signals—blue/red dots make entries easy to spot.
- Works well on intraday timeframes, giving a manageable number of setups.
- Allows for disciplined risk management with defined stop and target levels.
Drawbacks
- In very quiet or choppy markets, the dots may fire often with little follow-through.
- You may miss parts of a trend if the dot appears late after the price has already moved significantly.
- Requires good discipline and execution—slippage can reduce returns in fast markets.
- Indicator settings might need fine-tuning per pair and timeframe.
Case Study 1: EUR/USD, 15-Minute Chart
At 10:30 London, the Fisher Transform was above zero, confirming bullish bias.
At 10:45, the Magic Dots indicator printed a blue dot.
The candle closed, and a buy was entered at 1.1200.
The recent swing low was 1.1192, so the stop loss was placed at 1.1190 (10 pips risk).
Target was set for 20 pips (2:1), so take profit = 1.1220.
The trade ran and hit take profit, netting 20 pips.
Case Study 2: GBP/JPY, 30-Minute Chart
During the afternoon session, Fisher dropped below zero, indicating bearish bias.
At 14:30, the Magic Dots indicator showed a red dot.
A sell order was taken at 150.50.
The recent swing high was 150.60, so the stop loss was placed at 150.62 (12 pips risk).
With a target of 24 pips (2:1), the take profit was set at 150.26.
The trade moved downward and closed at a target profit of 24 pips.
Strategy Tips
- Select major currency pairs with good liquidity to minimize spread costs (EUR/USD, GBP/USD, USD/JPY, etc.).
- Check the higher-timeframe Fisher (e.g., H1) for agreement before taking a trade on a lower timeframe.
- Avoid trading just before or during major news releases—those can cause erratic reversals and false dots.
- Consider trailing your stop once the price moves in your favor to lock profits.
- Backtest this strategy across sessions and pairs to find the optimal settings for your style.
- Use fixed risk per trade (e.g., 0.5–1% of your account) to preserve capital during losing stretches.
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Download the “Fisher_org_v12.mq4” indicator for Metatrader 4
