About the Ehlers Fisher Transform MTF Indicator
The Ehlers Fisher Transform MTF Indicator for MT4 is a trend-following oscillator designed to help traders spot high-probability buy and sell opportunities.
By transforming price data into a normalized oscillator, it highlights potential market reversals and trend continuations.
Displayed in a separate MT4 chart window, the indicator uses colored bars to indicate bullish and bearish momentum.
Green bars suggest upward price movement, while red bars indicate downward pressure.
Traders can use the signals to align entries and exits with the prevailing trend.
Proper application of the Ehlers Fisher Transform MTF can help traders improve trade precision and momentum analysis.
Free Download
Download the “ehlers-fisher-transform-mtf.mq4” indicator for MT4
Key Features
- Trend oscillator with colored bars for buy and sell signals
- Displays in a separate MT4 window for easy observation
- Normalizes price data to highlight reversals and trend shifts
- Suitable for all currency pairs and multiple timeframes
- Can be used for entries, exits, or confirmation of other strategies
- Helps traders identify short-term and medium-term trend opportunities
Indicator Chart
The chart below shows the Ehlers Fisher Transform MTF Indicator in its MT4 window. The oscillator’s green and red bars highlight potential trend direction changes.
Green bars signal bullish momentum and possible buy opportunities. Red bars signal bearish momentum and possible sell opportunities.
Traders can use the bars in combination with other tools to time trades and confirm trend direction.
Guide to Trade with Ehlers Fisher Transform MTF Indicator
Buy Rules
- Enter a buy trade when the oscillator bars turn green
- Confirm that the trend is bullish on a higher timeframe
- Use additional support or trend indicators for more reliable entries
- Hold until the bars turn red or a reversal signal occurs
Sell Rules
- Enter a sell trade when the oscillator bars turn red
- Check the overall market trend for alignment with the sell signal
- Combine with resistance levels or other indicators for confirmation
- Maintain the position until the bars change to green or momentum shifts
Stop Loss
- Place stop loss slightly beyond the recent swing high for sells or swing low for buys
- Adjust based on market volatility and recent price movements
- Leave enough room to avoid being stopped out by normal price fluctuations
Take Profit
- Target previous swing highs/lows or nearby support/resistance zones
- Consider partial exits as price approaches significant levels
- Use trailing stops to follow the trend if momentum continues
Practical Tips
- Combine the oscillator with moving averages or trendlines for stronger confirmation
- Use higher timeframe trend analysis to filter lower timeframe signals
- Watch for clusters of green or red bars to identify strong trend momentum
- Avoid trading during low volume periods to reduce false signals
Scalping Strategy: Ehlers Fisher Transform MTF + Precision Trend Buy Sell Histogram MT4
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.
Download Now
Download the “ehlers-fisher-transform-mtf.mq4” indicator for Metatrader 4
FAQ
What markets can the Ehlers Fisher Transform MTF be applied to?
It works effectively on Forex majors, minors, and exotic pairs, and can also be applied to CFDs, commodities, and indices.
How does the indicator generate signals?
The colored bars change based on the Fisher Transform algorithm, turning green for bullish momentum and red for bearish momentum to indicate trade opportunities.
Can it be used for multiple timeframes?
Yes, it can be applied to short-term, medium-term, or longer-term charts, depending on your trading style and strategy.
Summary
The Ehlers Fisher Transform MTF Indicator for MT4 provides traders with a reliable way to monitor trend momentum using green and red oscillator bars.
It is effective across all currency pairs and adaptable to various timeframes.
The indicator helps traders improve trade timing, confirm trends, and capture profitable market movements efficiently.
