HOW IT WORKS This indicator uses the inverse fisher transform on the stoch RSI for clear buying and selling signals. The stoch rsi is used to limit it in the range of 0 and 100. We subtract 50 from this to get it into the range of -50 to +50 and multiply by .1 to get it in the range of -5 to +5. We then use the 9 period weighted MA to remove some "random" trade signals before we finally use the inverse fisher transform to get the output between -1 and +1
HOW TO USE Buy when the indicator crosses over –0.5 or crosses over +0.5 if it has not previously crossed over –0.5. Sell when the indicator crosses under +0.5 or crosses under –0.5 if it has not previously crossed under +0.5.
We can see multiple examples of good buy and sell signals from this indicator on the attached chart for QCOM. Let me know if you have any suggestions or thoughts!