OPEN-SOURCE SCRIPT
Fisher Transform with Signals
Fisher Transform with Signals
The Fisher Transform is a technical indicator created by John F. Ehlers that converts prices into a Gaussian normal distribution.1 The indicator highlights when prices have moved to an extreme, based on recent prices. This may help in spotting turning points in the price of an asset. It also helps show the trend and isolate the price waves within a trend.
-The Fisher Transform is a technical indicator that normalizes asset prices, thus making turning points in price clearer.
-Some traders look for extreme readings to signal potential price reversal areas, while others watch for a change in direction of the Fisher Transform.
-The Fisher Transform formula is typically applied to price, but it can also be applied to other indicators.
-Asset prices are not normally distributed, so attempts to normalize prices via an indicator may not always provide reliable signals.
The Fisher Transform enables traders to create a Gaussian normal distribution, which converts data that isn't typically normal distributed, such as market prices. In essence, the transformation makes peak swings relatively rare events to help better identify price reversals on a chart.
This technical indicator is commonly used by traders looking for leading signals, rather than lagging indicators. The Fisher Transform can also be applied to other technical indicators, such as the relative strength index (RSI) or moving average convergence divergence (MACD).
How to Calculate the Fisher Transform
1.Choose a lookback period, such as nine periods. This is how many periods the Fisher Transform is applied to.
2.Convert the prices of these periods to values between -1 and +1 and input for X, completing the calculations within the formula's brackets.
3.Multiply by the natural log.
4.Multiply the result by 0.5.
5.Repeat the calculation as each near period ends, converting the most recent price to a value between -1 and +1 based on the most recent nine-period prices.
6.Calculated values are added/subtracted from the prior calculated value.
How can this script tell us to buy or sell?
- If the fisher is bigger then trigger background will be colored blue and this means you can buy
- If the trigger is bigger then fisher this means you can sell
The Fisher Transform is a technical indicator created by John F. Ehlers that converts prices into a Gaussian normal distribution.1 The indicator highlights when prices have moved to an extreme, based on recent prices. This may help in spotting turning points in the price of an asset. It also helps show the trend and isolate the price waves within a trend.
-The Fisher Transform is a technical indicator that normalizes asset prices, thus making turning points in price clearer.
-Some traders look for extreme readings to signal potential price reversal areas, while others watch for a change in direction of the Fisher Transform.
-The Fisher Transform formula is typically applied to price, but it can also be applied to other indicators.
-Asset prices are not normally distributed, so attempts to normalize prices via an indicator may not always provide reliable signals.
The Fisher Transform enables traders to create a Gaussian normal distribution, which converts data that isn't typically normal distributed, such as market prices. In essence, the transformation makes peak swings relatively rare events to help better identify price reversals on a chart.
This technical indicator is commonly used by traders looking for leading signals, rather than lagging indicators. The Fisher Transform can also be applied to other technical indicators, such as the relative strength index (RSI) or moving average convergence divergence (MACD).
How to Calculate the Fisher Transform
1.Choose a lookback period, such as nine periods. This is how many periods the Fisher Transform is applied to.
2.Convert the prices of these periods to values between -1 and +1 and input for X, completing the calculations within the formula's brackets.
3.Multiply by the natural log.
4.Multiply the result by 0.5.
5.Repeat the calculation as each near period ends, converting the most recent price to a value between -1 and +1 based on the most recent nine-period prices.
6.Calculated values are added/subtracted from the prior calculated value.
How can this script tell us to buy or sell?
- If the fisher is bigger then trigger background will be colored blue and this means you can buy
- If the trigger is bigger then fisher this means you can sell
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這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。
開源腳本
秉持TradingView一貫精神，這個腳本的創作者將其設為開源，以便交易者檢視並驗證其功能。向作者致敬！您可以免費使用此腳本，但請注意，重新發佈代碼需遵守我們的社群規範。
免責聲明
這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。