Everyone is looking for an edge when trading crypto. In a new video, a Bitcoin indicator designed for finding precise market turning points is used to make $5 at $34,000.
The results were a staggering 88% success rate and more than 679,000% ROI. Let’s take a closer look.
About Bitcoin Indicator Used: Fisher Transform
The Fisher TransformFisher Transform was developed by John Elhers and was first mentioned in the November 2002 Issue of Technical Analysis of Stocks and Commodities Magazine. The tool tries to understand unpredictable price movements by using statistics.
The indicator takes price data and transforms it into a normal Gaussian distribution. All this means that the tool tries to make the price data look like a more organized pattern that can be easily understood.
In addition to using the tool’s reversal points for buying and selling signals, crossing the zero line is also a sign that the trend is strong. While the tool is very 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
Turned $5 In Bitcoin To $34,000
In the video, the monthly Fisher Transform is used to generate a buy and sell signal when the trigger line crosses above the fisher line from below or above, respectively.
The tool makes many bad trades. It especially lost some money that it got on the way to the second Bitcoin top in 2021. Despite a couple of slip ups, the Fisher Transform turned $5 to $34,000 in the end. Over $30,000 was added during the best trade.
This translates to roughly 679,000% ROI over the lifetime of BTCUSD price history. The surprising return is a reminder for investors and traders to find a technical system that works and then let it do its thing. Objective, non-discretionary trading systems can be boring but take emotions and bias out of the equation.