Market prices do not have a Gaussian probability density function as many traders think. Their probability curve is not bell-shaped. But trader can create a nearly Gaussian PDF for prices by normalizing them or creating a normalized indicator such as the relative strength index and applying the Fisher transform. Such a transformed output creates the peak swings as relatively rare events. Fisher transform formula is: y = 0.5 * ln ((1+x)/(1-x)) The sharp turning points of these peak swings clearly and unambiguously identify price reversals in a timely manner.
For signal used zero. You can change long to short in the Input Settings Please, use it only for learning or paper trading. Do not for real trading.
Hello! I would like to thank you for your job! i learn a lot with your descriptions under your indicators. I was wondering why under some of your scripts, you advise to don't use it for real trading please? Is it because there are much more better indicators and strategy today? (sorry for my bad english, and thanks again for your sharing)
Hustle-Barbie303
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Love Fisher transform and this is exactly what I'm looking for! However, is there any way to have it set to only long if fisher line crosses trigger line below 0 hline and only short if trigger line crosses fisher line above 0 hline? And get alerts for those conditions?