The Simple Fisher Indicator Forex Strategy, as the name says, is based on the fisher indicator mt4.
This is a straightforward trading system, but in a strong trending market, you can make a lot of pips with it.
Disclaimer: We do not trade using this system, nor do We use the fisher forex indicator.
But some of you may be looking at how to trade with the fisher forex indicator, so We will give you the basic simple rules on how to enter a trade with it.
You may have to adjust the strategy trading rules fo it your thinking.
Currency Pairs: Any
Indicators: Only fisher indicator mt4
Trading Sessions: Preferably, the London and New Your Trading Sessions.
How Does The Fisher Indicator Work?
To get more information on how the fisher indicator works, click this link: fisher indicator mt4
A fisher indicator is a histogram that tells you what the market trend is at the moment; it also gives you the entry signal that a new trend is forming and tells you how much strong the trend is.
Buying Rules of The Fisher Indicator Forex Strategy
- When a fisher forex indicator histogram bar changes from red to green color, at the close of the chart candlestick that causes the green color histogram bar to form, place a buy stop order 1-2 pips above the last high of that chart candlestick.
- put your stop-loss order at the nearest support/swing low or if that is too far, put it 10-30 pips away, depending on the timeframe you are trading
- The first option is to close the open trade when the opposite signal (sell signal) is generated to make a profit. Or you can use risk: reward(R:R) of 1:3 and calculate where to place your take profit(TP) order.
Selling Rules of The Fisher Indicator Forex Trading Strategy
- When a fisher forex indicator histogram bar changes from a green color to red, at the close of the chart candlestick that causes the red histogram bar, place a sell stop order 1-2 pips below the low of that candlestick.
- place your stop-loss order at the nearest resistance/swing high or if that is too far, put it 10-30 pips away, depending on the timeframe you are trading
- To take a profit, the first option is to close the open trade when the opposite entry signal (buy signal) is generated. Or you can use risk: reward(R: R) of 1:3 and calculate where to place your take profit(TP) order.
Disadvantages of The Simple Fisher Indicator Forex Trading Strategy
From the above mt4 charts, you can see that the fisher forex indicator works really well in a strong forex trending market, and therein lies the problem: if it is a ranging or sideways forex market, it will not perform well.
Like a moving average indicator, the fisher indicator is lagging. Price moves way forward before it responds to it.
Advantages of The Simple Fisher Indicator Forex Trading Strategy
In strong trending forex markets, if you are trading 1hr timeframe and above, you can easily bag hundreds of profitable pips with this forex trading system.
Don’t think that because it is such a simple forex trading strategy, it does not have its potential.