The combination of two indicators and the template is called Fisher and Stochastics Forex Trading Indicator MT5. The Fisher indicator, which is a custom indicator, oscillates around the zero line and is presented as a histogram. This signal is a buy-or-sell signal.
Histograms that have lime color indicate a trend's bias, while those with red color indicate a trend's biased.
The Fisher indicator is excellent on its own. It is better to combine it with other indicators and strategies. The combination of the Fisher M5 indicator and Stochastic M5 works well. One of the most popular indicators for trading is the Stochastic indicator.
The stochastic indicator's ability to quickly react to changes in price is one of its greatest strengths. This allows traders to spot minor swings that scalpers love and can profit from. The stochastic indicator also has an overbought/oversold level. The market is considered to be overbought if the indicator is higher than 80. The market is oversold if the indicator falls below 20.
How to trade using the Fisher and Stochastics Forex Trading Indicator MT5?
The buy setup - Enters, Stop Losses and Take Profits
We will combine the Fisher indicator with the stochastic indicator to tie it all together.
These two rules are essential in order to enter the market for a buy-setup.
- The Fisher indicator should plot lime histograms to indicate that the market is biased bullish.
- The stochastic indicator should cross the 20-line at the oversold zone.
Stop loss should be set just a few pip below the minor swing low. Due to the responsiveness of the stochastic indicator, the swing low will often be the entry candle.
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If the trend is reversed and the Fisher indicator plots bearish histograms then the trade should manually be closed.
We will be more conservative in our take profits as this is a scalping strategy. As our target take-profit, we will use a 2:1 risk-reward rate. This will increase the likelihood that we will hit the take profit more often, but still allow us to make a profit that is twice as high as our risk.
The sell setup - entries, stop losses & take profits
To trigger a sale trade, you should review the following rules:
- The Fisher indicator should plot red histograms to indicate that the market's bias is bearish.
- The stochastic indicator should cross the 80-line at the overbought zone.
Stop loss should not be more than a few pips from the swing high.
If the market's bias shifts and the Fisher indicator plots bullish histograms then the trade should be manually closed.
We will still be using a 2:1 risk-reward rate as the basis for our target take profit.
The chart below shows that three trades could be made in less than 8 hours using the 5-minute chart.
How do I download and install an indicator
These steps are required to install the indicator onto your MT5 platform.
- At the bottom of your screen, click on the " Download Indiator" button.
- Save the file to your hard drive.
- Move the files to the MT5>Indicator directory in the MetaTrader5 software folder.
- Start your Metatrader platform.
- Navigate to " Indiators."
- To apply the template, select " Fisher and Stochastics Forex Trading Indicator".
Notice: This indicator was created by Jack. AtoZ Markets has no copyrights to this trading tool.
Is it possible to use the Fisher and Stochastics Forex Trading Indicator MT5 on your own?
This guide will help you understand the basics of this indicator before you use it.
Our in-house trader Dr Yury Sfronau is a PhD in Economics Sciences. He gives you daily signals to buy or sell stocks, forex, and cryptocurrencies. It's not based on one strategy that has been proven successful.
Since 2015, his trading strategy which relies on non-linear dynamic model has earned him more than 65 000 pip profits. There are strong buy signals in several markets right now that you don't want miss.
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