Fisher Pattern Foreign exchange Buying and selling Technique

"Trade with the trend!" This is a key concept in trading that would greatly improve a trader's performance. Trades that are beyond the momentum of the market are more likely to go in the direction of the trade than trades made against the general trend direction of the market. But how do you determine the trend?

There are many ways to set the trend. There are those who use price actions and a bare chart to determine trend direction. There are those who use moving averages. While others use indicators. Of the three, trading bare chart price action could possibly be the most difficult as it would generally require some mastery. Moving averages work well too. However, there are some custom technical indicators that really make sense visually. They are easy to understand and seem to work well for tracking price movements and determining trend.

The Fisher Trend Forex Trading Strategy uses custom indicators to determine the medium term trend and entry signals. It's very objective, easy to follow, and it works.

Fisher Yur4ik Trend

The Fisher Yur4ik indicator used in this trading strategy is based on the John Ehlers Inverse Fisher Transform indicator. It is a probability-based indicator that is formulated for price movements in trading. Regular probability distributions usually have an equal probability of traveling an equal distance from a given point. When a number starts at zero, it has an equal chance of traveling to +1 or -1. This is true in most cases, but it does not apply to price and trading in general. If you've been trading for a while you know that price is trending and could have some degree of predictability. This is because the distribution of the probability of price movements is not the same. If price starts from zero, it wouldn't necessarily mean that it has an equal chance of moving around +1 or -1. You would need to consider the trend and the mean reversal. This is what the Fisher Yur4ik Trend Indicator addresses.

This indicator is basically an oscillating indicator that prints histogram bars in its own window. Lime bars for positive histogram figures and red bars for negative histogram figures are painted.

If you were to look at it visually, it works well for showing the direction of trend in the medium term. If you were to watch it closely, the price would tend to have a higher chance of approaching the trend indicated by this indicator.

Trend Manager indicator

The trend manager indicator is a custom indicator that accurately shows the direction of the trend. To do this, bars are drawn on the price chart that change color when the trend direction changes. It looks more like the "cloud" of the Ichimoku cloud indicator. The difference is that the trend tends to be lower, which makes the indicator useful for determining the short-term and medium-term trends.

Trading strategy concept

This strategy is a high probability trend based on the specified trends of the Fisher Yur4ik and Trend Manager custom indicators.

The Fisher Yur4ik indicator serves as the main trend filter. Since the trend direction indicated by the Fisher Yur4ik is quite good, it is very likely that sooner or later the price will move in the direction in which it is pointing. The question is when?

This is where the trend manager indicator would come into play. Since the trend manager indicator is usually a good indication of certain entry points for short-term trends, it is well suited as an entry signal.

Trades are only executed when the signal generated by the Trend Manager indicator coincides with the direction of the Fisher Yur4ik indicator. The combination of these indicators seems to work well as both indicators are usually complementary.

Indicators:

  • TrendManager
  • Fisher Yur4ik

Time window: 1-hour, 4-hour, and daily charts

Currency pair: Major and minor pairs

Trading session: Meetings in Tokyo, London and New York

Buy (Long) Trade Setup

entry

  • The Fisher Yur4ik indicator should print lime positive histograms that indicate a bullish trend direction
  • Enter a buy order as soon as the trend manager indicator prints a blue bar indicating a short-term bullish trend reversal

Stop loss

  • Set the stop loss at the support level below the entry candle

output

  • Close the trade as soon as the trend manager indicator turns red, indicating a possible bearish trend reversal

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Sell ​​(Short) Trade Setup

entry

  • The Fisher Yur4ik indicator should print red negative histograms that indicate a bearish trend direction
  • Enter a sell order as soon as the trend manager indicator prints a red bar that briefly indicates a bearish trend reversal

Stop loss

  • Set the stop loss to the resistance level above the entry candle

output

  • Close the trade as soon as the Trend Manager indicator turns blue, indicating a possible bullish trend reversal

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Conclusion

This trading strategy is a high probability and high return trading strategy. The reason for the relatively high win rate is due to the use of the Fisher Yur4ik custom indicator. Trading in the direction indicated by the Fisher Yur4ik indicator seems to greatly increase the likelihood that price will move in the direction of the trade.

Based on the Trend Manager indicator, we can then enter and exit the market precisely. This enables us to get the most out of the trend moves while retaining most of the profits when the trend ends.


Forex Trading Strategy Installation Instructions

The Fisher Trend Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator (s) and template.

The essence of this forex strategy is to transform the accumulated history data and trading signals.

The Fisher Trend Forex Trading Strategy offers the ability to spot various peculiarities and patterns in price dynamics that are not visible to the naked eye.

Based on this information, traders can assume further price movements and adjust this strategy accordingly.

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Click here for the step by step XM Trading Account Opening Guide

How do I install the Fisher Trend Forex Trading Strategy?

  • Download Fisher Trend Forex Trading Strategy.zip
  • * Copy mq4 and ex4 files to your Metatrader directory / Experts / Indicators /
  • Copy the tpl file (template) into your Metatrader directory / templates /
  • Start or restart your Metatrader client
  • Select the chart and timeframe in which you want to test your forex strategy
  • Right click on your trade chart and hover over "Template".
  • Move right to select the Fisher Trend Forex trading strategy
  • You will see that the Fisher Trend Forex trading strategy is available on your chart

* Note: Not all forex strategies come with mq4 / ex4 files. Some templates are already built into the MT4 indicators of the MetaTrader platform.

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