The Ehlers Fisher Transform MTF indicator for MT4 (Metatrader 4) displays the winning Ehlers Fisher Transform trading method on the chart.
The indicator appears in a separate MT4 chart window as a colored buy and sell signals oscillator.
Ehlers Fisher Transform MTF is a trend oscillator indicator and can be used in multiple ways.
Trade Example
- Initiate a buy trade whenever the bars turn green (bullish trend).
- Initiate a sell trade whenever the bars turn red (bearish trend).
The Dynamic Gains 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 “ehlers-fisher-transform-mtf.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Ehlers Fisher Transform MTF 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 Ehlers Fisher Transform MTF 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: Signals
Does the indicator repaint? No.
Scalping Strategy: Ehlers Fisher Transform MTF + Precision Trend Buy Sell Histogram MT4
Introduction
This scalping strategy combines the Ehlers Fisher Transform MTF MT4 with the Precision Trend Buy Sell Histogram MT4.
The Ehlers Fisher Transform MTF Indicator identifies potential trend reversals by applying the Fisher Transform to price data.
The Precision Trend Buy Sell Histogram MT4 provides a visual representation of trend strength and direction.
This strategy is best suited for short timeframes such as M1, M5, and M15, and is ideal for currency pairs with low spreads and high liquidity, like EUR/USD, GBP/USD, and USD/JPY.
Traders who prefer quick entries and exits with defined risk parameters will find this approach beneficial.
Buy Entry Rules
- Trend Confirmation: Ensure that the Ehlers Fisher Transform MTF Indicator is above the zero line, indicating an uptrend.
- Signal Confirmation: Wait for the Precision Trend Buy Sell Histogram MT4 to display green bars, signaling bullish momentum.
- Entry Point: Enter a buy position at the close of the candle that confirms both indicators are aligned bullishly.
- Stop Loss: Place a stop loss just below the recent swing low or a few pips below the entry point, depending on your risk tolerance.
- Take Profit: Set a take profit target at a predefined number of pips, such as 5–10 pips, or use a risk-reward ratio of at least 1:2.
Sell Entry Rules
- Trend Confirmation: Ensure that the Ehlers Fisher Transform MTF Indicator is below the zero line, indicating a downtrend.
- Signal Confirmation: Wait for the Precision Trend Buy Sell Histogram MT4 to display red bars, signaling bearish momentum.
- Entry Point: Enter a sell position at the close of the candle that confirms both indicators are aligned bearishly.
- Stop Loss: Place a stop loss just above the recent swing high or a few pips above the entry point, depending on your risk tolerance.
- Take Profit: Set a take profit target at a predefined number of pips, such as 5–10 pips, or use a risk-reward ratio of at least 1:2.
Advantages
- Provides quick signals for fast-paced scalping sessions.
- Helps identify short-term trend reversals with high precision.
- Works well on multiple timeframes, allowing flexibility from M1 to M15 charts.
- Combining two indicators reduces the likelihood of false entries compared to using one alone.
- Suitable for major currency pairs with tight spreads, maximizing potential profit per pip.
Drawbacks
- Can produce multiple signals in highly volatile markets, requiring careful filtering.
- Frequent trades may increase transaction costs, especially on low-volume brokers.
- Not ideal for sideways or low-volatility markets where indicators may whipsaw.
- Overtrading without strict risk management can quickly erode profits.
Example Case Study 1 — EUR/USD M5
On a typical trading day, the EUR/USD pair was exhibiting a clear uptrend.
At 10:45 AM, the Ehlers Fisher Transform MTF Indicator was above the zero line, confirming the uptrend.
Shortly after, the Precision Trend Buy Sell Histogram MT4 displayed green bars, signaling increasing bullish momentum.
A buy position was entered at 1.2050, with a stop loss placed at 1.2045 and a take profit target of 1.2060.
The trade reached the take profit level within 10 minutes, yielding a 10-pip profit.
Example Case Study 2 — GBP/USD M1
During the London session, the GBP/USD pair was in a downtrend.
At 9:35 AM, the Ehlers Fisher Transform MTF Indicator was below the zero line, confirming the downtrend.
The Precision Trend Buy Sell Histogram MT4 then displayed red bars, indicating increasing bearish momentum.
A sell position was entered at 1.3900, with a stop loss at 1.3908 and a take profit target of 1.3884.
The trade hit the take profit level within 5 minutes, securing a 16-pip profit.
Strategy Tips
- Focus on high-liquidity pairs like EUR/USD, GBP/USD, and USD/JPY to minimize slippage.
- Wait for both indicators to align clearly before entering a trade to improve accuracy.
- Use small position sizes and strict stop-losses to manage risk in fast-moving markets.
- Consider scaling out part of your position once a portion of your profit target is reached.
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Download the “ehlers-fisher-transform-mtf.mq4” indicator for Metatrader 4
