At times traders want to be doubly sure of everything. And it’s very natural. When you are looking to invest money, why risk it? But there’s one problem with being overcautious. That is you tend to have second thoughts on every little selection, no matter what experts tell you about strategies and indicators. So when you see a simple indicator, you doubt it. And you think it’s not technical enough. Now that is one basic problem. That’s because simple indicators have been ruling the Forex arena. So you when you see a simple indicator like Forex fisher indicator, you have second thoughts. And such concern is misplaced.
Why Forex fisher indicator?
Fisher is a very popular indicator. And the reason for its popularity might be at times its doubting point. As a chart, it is nothing but a very basic histogram. Even then it is a tremendously useful tool. In fact, traders use it very widely in all financial markets. Yes, even people in stock market make use of this indicator.
It may seem simple to the eye. But a lot of calculations go behind the construction of this indicator. There are a lot of technical considerations as well. It works on the idea of ratios. It measures the ratios of current price against the maximum and minimum prices. These extreme prices are obviously from previous time periods. Therefore it works on recent data and gives traders an idea of what they can expect from the current market. This is how Forex fisher indicator works.
How good is it?
There are a lot of good features of this indicator. These features make your trading much easier. Some of these features are as follows:
a) Firstly, this indicator works for almost every currency. That means any currency pair will suit your trade as long as you make a fisher indicator Forex download. But for best results, it's best to use major currency pairs.
That way moves can be a bit more predictable. Other pairs may not give you that stability. Some currencies, especially Asian ones, are a bit unstable. Thus it is best to use major pairs and carry on your trade.
b) Another very important feature is how easy to interpret it is. The chart is a live histogram. That means you can see signals quite easily. Most platforms that host this indicator has a similar color coding of red and green. The buy signal is one when bar changes from red color to green. And when bar changes from green to red, it’s time to sell.
This trading is that easy. Yes, its very simplicity may fend off some traders. But that should not be a worry if you want to make pips. In fact, it is the simplicity that should be encouraging for a trader to take up a Forex fisher indicator. This indicator is readily available for use on popular platforms. Meta Trader 4 has this option too. So that makes it even easier for you to find this tool. So get it right now and trade away.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.