Ehlers Fisher Transform Bitcoin Trading Analysis & Ehlers Fisher Transform Trading Signals
Created by John Ehler,
Originally used to trade Stocks and Commodities Market.
Ehler Fisher Transform has two lines, the Fisher Transform line & the trading signal line: signals are generated when there is a crossover of these two lines which looks like the stochastic oscillator trading indicator.
It was designed to define major bitcoin price reversals using the rapid response time and sharp, distinct turning points making it a leading technical indicator.
This btcusd indicator is based on the assumption that bitcoin trading prices do not have a Gaussian probability density function (bell shaped curved movement), but that by normalizing bitcoin price and applying the Fisher Transform you can create a nearly Gaussian probability density function on the lines drawn.
Ehlers Fisher Transform
Bitcoin Crypto Currency Analysis & Generating Signals
Trading signals can be generated with pin-point accuracy by using the cross-over points of the Fisher Transform and its signal-line.
However, this Ehlers Fisher Transform isn't very accurate, as with all leading technical indicators, it gives many false trading signals & it is prone to whipsaws, it is therefore recommended to trade it in combination with other technical indicators.
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