Inverse Fisher Transform Of RSI Indicator

Inverse Fisher Transform Of RSI Indicator

Inverse Fisher Transform of the RSI indicator for MT4 best oversold overbought BUY and SELL forex trading signals using RSI.

The inverse Fisher transform of RSI indicator for MT4 smoothens the price using the moving average. Furthermore, it calculates the RSI values for the smoothened prices and applies the Fisher filter to the results. As a result, the indicator identifies the best entry points. So, forex traders can BUY and SELL successfully using the indicator.

The indicator works well in all intraday price charts and the daily, weekly, and monthly price charts. Additionally, forex traders can apply other time frame price values and plot the indicator window in the current price chart. As a result, technical forex traders can use the indicator to trade multi-timeframe (mtf) technical trading strategies.

The indicator is best suitable for new and advanced forex traders. New forex traders can use the overbought and oversold trading signals to trade successfully. However, advanced forex traders combine multiple indicators and trade with confluence.

Inverse Fisher Transform Of RSI Indicator For MT4 Trading Signals

The above EURUSD H4 candlestick price chart shows the inverse Fisher transform of the RSI indicator for MT4 in action. The oscillator plots the oversold, mid-level, and overbought levels as dotted lines in the indicator window. The indicator plots the overbought oscillator values as Red and the oversold values as Blue. However, the values in between are plotted in Dim Gray.

If the oscillator line color is red, the price has reached the oversold territory. But the best entry point is to wait for the oscillator to change from Red to Dim gray. Once the oscillator changes to Dim gray forex, traders can enter the market with a BUY trade with a stop loss below the previous swing low. The indicator does not provide a profit target, so traders should apply additional strategies to identify the best profit target. Generally, a risk-reward ratio higher than 1:2 or an opposite trading signal is a good exit point with profit.

Similarly, if the oscillator line color is blue, the price has reached an overbought condition. So, forex traders can anticipate a bearish price reversal. However, the best practice is to wait for the color to change to Dim Gray and place a SELL trade. The best stop loss is above the previous swing high, while traders can book profits with a good risk-reward ratio or at an opposite trading signal.

Conclusion
The inverse Fisher transform of RSI indicator for MT4 assists forex traders using the overbought and oversold levels to identify the BUY and SELL entry points. Moreover, the indicator provides the best entry points by combining the moving averages, RSI, and Fisher filters. Additionally, forex traders can download the indicator for free and install it easily.