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Everyone is looking for an edge when trading crypto. In a new video, a bitcoin indicator designed to find precise turning points in the market is used to turn $5 into $34,000.
The results are an astonishing 88% success rate and over 679,000% ROI. let’s take a closer look.
About the Bitcoin Indicator Used: Fisher Transform
fisher transformfisher transform John Elhers and first mentioned in the November 2002 Technical Analysis issue of Stocks & Commodities Magazine. The tool attempts to make sense of unexpected price movements using statistics.
The indicator takes price data and transforms it into a Gaussian normal distribution. This means that the tool tries to make the price data look like a more organized pattern which may be easier to understand.
In addition to using the tool’s turning points to generate buy and sell signals, passing through the zero line is also an indication that a trend is strengthening. While the tool is highly effective, combining its signals with Japanese candlesticks, chart patterns and the Elliott Wave principle can improve results.
The monthly Fisher Transform | BTCUSD on TradingView.com
Convert $5 in Bitcoin to $34,000
In the video, the monthly Fisher Transform is used to generate buy and sell signals when the trigger line crosses above the Fisher line from below or above, respectively.
The tool makes many bad trades. It specifically lost some of the money it earned on the second bitcoin top in 2021. Despite some slippage, the Fisher Transform finally turns $5 into $34,000. Over $30,000 is added during the best trades.
This translates to roughly 679,000% ROI over the lifetime of BTCUSD price history. Shocking returns are a reminder to investors and traders to find a technical system that works and then let it do its job. Objective, non-discretionary trading systems can be boring but take emotion and bias out of the equation.
