I personally like the Fisher indicator on metatrader. The Fisher Yur4ik indicator is a simple version of the the Fisher Transform indicator which was devised John Ehlers.

Ehlers indicators have become more popular in the last few years and I certainly feel they deserve as much attention as any other indicator out there.

I think that the Fisher indicator is best used when it is used as the main trend indicator of a trading system. This means that you will first look at Fisher and if it is above the zero line you will be looking fro buy signals and if it is below the zero line you will be looking for sell signals.

Here is a very simple 1 min Ftse chart of a basic Fisher concept with a moving average crossover used to generate the entry signals. The Fisher indicator is set to 55 and the moving

Click image to enlarge

average crossover signals are two simple Ma’s set to 13 and 25 respectively. In short we are looking to only take short signals from the crossover when the Fisher indicator is red and longs when it is green. I have added a vertical line or two to show you roughly where the changes in trends occur. You can clearly see taking only the sell arrows when the Fisher transform is red and only taking green when the Fisher is green works out pretty well.

You will get a few false starts but because the the ma’s are quite short the market doesn’t move too far before giving you an opposite signal.

It is a very basic concept but one I think some could take and add their own twist to it. Personally, I would say that the way to make this idea a profitable systems is to do some manual back testing and devising a sound stop and profit taking strategy or maybe you would want to try a parabolic sar to trail your stop on the runners. After all that is where the profit is to be made in my opinion on a system like this.

There are quite a few Fisher indicators out there so I have add the two that I think are of most use.

Here is the traditional Fisher Transform Indicator for Metatrader and here is the Fisher Yur4ik I used in my chart above.

You may need to set the bottom colour of this version in the properties to black to get the green/red colour change in the indicator as shown in my chart.

Fisher Transform is also available on Ninjartrader so here it is.

Updated 27/10/09-Readers of this article may want to read this one on varoius Fisher Indicators.