Ehlers Fisher Transform Gold Trading Analysis & Ehlers Fisher Transform Trading Signals

Developed by John Ehlers,

Originally used to trade Stocks and Commodities Market.

Ehlers Fisher Transform has two lines, the Fisher Transform line & the signal line: trading signals are generated when there's a crossover of these 2 lines which looks like the stochastic oscillator.

It was designed to define major xauusd price reversals using the rapid response time and sharp, distinct turning points making it a leading indicator.

This gold indicator is based on the assumption that xauusd trading prices do not have a Gaussian probability density function (bell shaped curved movement), but that by normalizing xauusd price & applying the Fisher Transform you can create a nearly Gaussian probability density function on the lines drawn.

Ehlers Fisher Transform

XAUUSD Trading Analysis & Generating Trading 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 is not very accurate, as with all leading technical indicators, it gives many false signals & it's prone to whipsaws, it is therefore recommended to trade it in combination with other technical indicators.