The Simple Fisher Indicator Forex Trading Strategy as the name says is based on the fisher indicator mt4.
This is a very simple trading system but in a strong trending market, you can make a lot of pips with it.
Disclaimer: I do not trade using this system, nor do use the fisher indicator.
But some of you may be interested in how to trade with the fisher indicator so I will give you the basic rules on how to trade with it.
You may have to adjust the trading rules fo it your own thinking.
Currency Pairs: Any
Timeframes: Any
Indicators: Only fisher indicator mt4
Trading Sessions: Preferably, the London Trading Session and New Your Trading Session.
How Does The Fisher Indicator Work?
To get more information how the fisher indicator works, click this link: fisher indicator mt4
A fisher indicator is basically a histogram that tells you a what the trend is at the moment, it also gives you the signal that a new trend is forming and it also tells you, how strong the trend is.
Buying Rules of The Simple Fisher Indicator Forex Trading Strategy
- When a fisher indicator histogram bar changes from red to green, at the close of the candlestick that causes the green histogram bar to form, place a pending buy stop order 1-2 pips above the high of that candlestick.
- place your stop loss order at the nearest support/swing low or if that is too far, place it 10-30 pips away depending on the timeframe you are trading
- for take profit, the first option is to close the trade when the opposite signal (sell signal) is generated. Or you can use risk:reward of 1:3 and calculate where to place your take profit order.
Selling Rules of The Simple Fisher Indicator Forex Trading Strategy
- When a fisher indicator histogram bar changes from green to red, at the close of the candlestick that causes the red histogram bar to form, place a pending 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, place it 10-30 pips away depending on the timeframe you are trading
- for take profit, the first option is to close the trade when the opposite signal (buy signal) is generated. Or you can use risk:reward of 1:3 and calculate where to place your take profit order.
Disadvantages of The Fisher Indicator Forex Trading Strategy
From the above charts, you can see that the fisher indicator works really well in a strong trending market and therein lies the problem: it in ranging or sideways market, it will not perform well.
Similar to a moving average indicator, the fisher indicator is a lagging indicator. Price moves way ahead before it responds to it.
Advantages of The Fisher Indicator Forex Trading Strategy
In strong trending markets, if you are trading 1hr timeframe and above, you can bag 100’s of profitable pips easily with this forex trading system.
Do don’t think that just because it is such as simple forex trading strategy that it does not have its potential.
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