Fisher Transform
Last updated
Last updated
The physicist John Ehlers created the Fisher Transform in 2002. The intention of the indicator is to show where there are turning points, which can be achieved with the help of the Inverse Fisher Transform. This changes indicators in such a way that the movements are less random, and the signal quality is clearer. The Fisher Transform either stretches or compresses the input values of the function so that the output is very likely to be between -1 and 1. This gives us a clearly identifiable pattern where even indicators such as the RSI become better defined and more precise.
A system using the Fisher Transform can be found here:
inSeries Input data series for the indicator
period Number of bars included in the calculations
double
When using this method with an index (e.g. FisherTransform(10)[int barsAgo] ), the value of the indicator will be issued for the referenced bar.