Definition

The Ehler Fisher Transform (EFT) is a specialized tool that reshapes your price data into a curve resembling a normal distribution. Think of it as smoothing out the market's jagged edges to give you a clearer view. It's an unbounded oscillator, meaning it doesn't have specific upper or lower limits, and it comes with a trailing Trigger line that helps you catch trend changes a bit earlier.

Suggested Trading Use

If you see the EFT line cross above the Trigger line, it's like a green light signaling the market might be getting ready to go up. You could consider this a favorable moment to enter a long position or add to your existing one.

When the EFT line crosses below the Trigger line, however, it's more like a stop sign warning you that prices might be headed downhill. You may want to hit the brakes on buying and think about shorting the asset or setting tighter stop-loss levels.

Keep in mind that the EFT is designed to offer smoother, less jittery signals than other oscillators.