Everyone is looking for an edge when trading cryptocurrencies. In a new video, a Bitcoin indicator designed to find precise market turning points is used to turn $5 into $34,000.
The results were a shocking 88% success rate and over 679,000% return on investment. Let’s take a closer look.
(embed) https://www.youtube.com/watch?v=Bm5c_OGzbvo (/embed)
About the bitcoin indicator used: Fisher Transform
Fisher transformFisher transform It was created by John Elhers and was first mentioned in the November 2002 issue of Technical Analysis of Stocks and Commodities. The tool attempts to understand unexpected price movements using statistics.
The indicator takes price data and transforms it into a normal Gaussian distribution. All this means is that the tool tries to make the price data look like a more structured pattern that is easier to understand.
In addition to using the instrument’s turning points for buy and sell signals, passing through the zero line is also a sign of trend consolidation. While the tool is very effective, combining its signals with candlesticks, chart patterns and the Elliott Wave principle can improve results.
The monthly Fisher Transform | BTCUSD on TradingView.com
Convert $5 Bitcoin to $34,000
In the video, the monthly Fisher transform is used to generate buy and sell signals when the trigger line crosses over the fishing line from below or above, respectively.
The tool makes many bad deals. He notably loses some of the money he made on his way to the second Bitcoin peak in 2021. Despite a couple of failures, Fisher Transformed from $5 to $34,000 in the end. Over $30,000 added during the best trade.
This translates to an ROI of approximately 679,000% over the course of BTCUSD price history. Shocking Return is a reminder for investors and traders to find a technical system that works and then let it do its thing. Objective and non-judgmental trading systems can be boring but they take feelings and bias out of the equation.
