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Fisher Transform Trend Navigator [QuantAlgo]

🟢 Overview
The Fisher Transform Trend Navigator applies a logarithmic transformation to normalize price data into a Gaussian distribution, then combines this with volatility-adaptive thresholds to create a trend detection system. This mathematical approach helps traders identify high-probability trend changes and reversal points while filtering market noise in the ever-changing volatility conditions.

🟢 How It Works
The indicator's foundation begins with price normalization, where recent price action is scaled to a bounded range between -1 and +1:
Pine Script®
This normalized value then passes through the Fisher Transform calculation, which applies a logarithmic function to convert the data into a Gaussian normal distribution that naturally amplifies price extremes and turning points:
Pine Script®
The smoothed Fisher signal is then integrated with an exponential moving average to create a hybrid trend line that balances statistical precision with price-following behavior:
Pine Script®
To filter out false signals and adapt to market conditions, the system calculates dynamic threshold bands using volatility measurements:
Pine Script®
When price momentum pushes through these thresholds, the trend line locks onto the new level and maintains direction until the opposite threshold is breached:
Pine Script®

🟢 Signal Interpretation
The Fisher Transform Trend Navigator applies a logarithmic transformation to normalize price data into a Gaussian distribution, then combines this with volatility-adaptive thresholds to create a trend detection system. This mathematical approach helps traders identify high-probability trend changes and reversal points while filtering market noise in the ever-changing volatility conditions.
🟢 How It Works
The indicator's foundation begins with price normalization, where recent price action is scaled to a bounded range between -1 and +1:
highestHigh = ta.highest(priceSource, fisherPeriod)
lowestLow = ta.lowest(priceSource, fisherPeriod)
value1 = highestHigh != lowestLow ? 2 * (priceSource - lowestLow) / (highestHigh - lowestLow) - 1 : 0
value1 := math.max(-0.999, math.min(0.999, value1))
This normalized value then passes through the Fisher Transform calculation, which applies a logarithmic function to convert the data into a Gaussian normal distribution that naturally amplifies price extremes and turning points:
fisherTransform = 0.5 * math.log((1 + value1) / (1 - value1))
smoothedFisher = ta.ema(fisherTransform, fisherSmoothing)
The smoothed Fisher signal is then integrated with an exponential moving average to create a hybrid trend line that balances statistical precision with price-following behavior:
baseTrend = ta.ema(close, basePeriod)
fisherAdjustment = smoothedFisher * fisherSensitivity * close
fisherTrend = baseTrend + fisherAdjustment
To filter out false signals and adapt to market conditions, the system calculates dynamic threshold bands using volatility measurements:
dynamicRange = ta.atr(volatilityPeriod)
threshold = dynamicRange * volatilityMultiplier
upperThreshold = fisherTrend + threshold
lowerThreshold = fisherTrend - threshold
When price momentum pushes through these thresholds, the trend line locks onto the new level and maintains direction until the opposite threshold is breached:
if upperThreshold < trendLine
trendLine := upperThreshold
if lowerThreshold > trendLine
trendLine := lowerThreshold
🟢 Signal Interpretation
- Bullish Candles (Green): indicate normalized price distribution favoring bulls with sustained buying momentum = Long/Buy opportunities
- Bearish Candles (Red): indicate normalized price distribution favoring bears with sustained selling pressure = Short/Sell opportunities
- Upper Band Zone: Area above middle level indicating statistically elevated trend strength with potential overbought conditions approaching mean reversion zones
- Lower Band Zone: Area below middle level indicating statistically depressed trend strength with potential oversold conditions approaching mean reversion zones
- Built-in Alert System: Automated notifications trigger when bullish or bearish states change, allowing you to act on significant developments without constantly monitoring the charts
- Candle Coloring: Optional feature applies trend colors to price bars for visual consistency and clarity
- Configuration Presets: Three parameter sets available - Default (balanced settings), Scalping (faster response with higher sensitivity), and Swing Trading (slower response with enhanced smoothing)
- Color Customization: Four color schemes including Classic, Aqua, Cosmic, and Custom options for personalized chart aesthetics
開源腳本
本著TradingView的真正精神,此腳本的創建者將其開源,以便交易者可以查看和驗證其功能。向作者致敬!雖然您可以免費使用它,但請記住,重新發佈程式碼必須遵守我們的網站規則。
👉 Access the best tools for trading & investing here (3-day FREE trial): joinquantalgo.com/
📩 DM if you need any custom-built indicators or strategies.
📩 DM if you need any custom-built indicators or strategies.
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。
開源腳本
本著TradingView的真正精神,此腳本的創建者將其開源,以便交易者可以查看和驗證其功能。向作者致敬!雖然您可以免費使用它,但請記住,重新發佈程式碼必須遵守我們的網站規則。
👉 Access the best tools for trading & investing here (3-day FREE trial): joinquantalgo.com/
📩 DM if you need any custom-built indicators or strategies.
📩 DM if you need any custom-built indicators or strategies.
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。