Fisher Transform Indicator in FX Replay

The Fisher Transform indicator in FX Replay is a powerful momentum oscillator that converts price movements into a Gaussian distribution, making it easier to detect reversal zones and extreme conditions. Its unique transformation highlights inflection points more clearly than traditional oscillators.

How It Works in FX Replay

• Smooths raw price into a statistically normalized curve.
• Plots a Fisher line and a trigger (signal) line.
• Ideal for spotting sharp turning points in trends.

How to Use It

Interpret the Levels:

• High Fisher values: Suggest market may be overbought.
• Low Fisher values: Suggest market may be oversold.

Watch for Crossovers:

• Fisher line crossing above trigger line: Potential bullish entry.
• Fisher line crossing below trigger line: Potential bearish entry.

Look for Divergences:

• If price is climbing but Fisher is falling, momentum may be fading.
• Combine with FX Replay’s liquidity or FVG zones for added confluence.

Example Trade Setup in FX Replay

• Fisher is below +1.5 and crosses above the trigger line → possible bullish reversal.
• Fisher is above +1.5 and crosses below the trigger line → possible bearish reversal.

Tips for Effective Use

• Adjust the look-back period (common values: 9, 10, 13) to match the asset and timeframe.
• Pair with indicators like MACD, RSI, or envelopes for cross-confirmation.
• In FX Replay, you can overlay Fisher with entry simulations using the Position Tool or Auto Breakeven for dynamic trade management.

Need help integrating the Fisher Transform into your momentum-based backtesting strategy or refining it with entry filters? Just let me know.