FisherTransform

Description

The Fisher Transform indicator is used to identify price reversals via Fisher transformation technique.

The study first normalizes the median price within its range over a specified number of bars so that its values oscillate between -1 and +1. The results are then smoothed with 5 period EMA and limited to fit (-1;1) interval. This restriction prevents the following Fisher transformation applied to the smoothed price data from blowing up.

Along with the derived line, the Fisher Transform indicator plots the same line delayed by one bar so that the crossovers identify the price reversal points.

Input Parameters

Parameter Description
price The price used in calculations.
length The number of bars used to normalize the median price.

Plots

Plot Description
FTOneBarBack The Fisher Transform plot one bar back.
FT The Fisher Transform plot.
ZeroLine Zero level.

Example*

*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.

  Past performance is no guarantee of future performance.

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