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.
Mr. Potter, what if the Fisher line is just crossing above the Trigger line and both are trending upward, however the candle is red instead of green that day. Is it still a buy signal? Thanks!
jflycn
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Can you explain " + 0.5 * nz(nFish[1])" ? Thanks.
HermanBrummer
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Mr Potter, you are a coding genius! I been trying out several of your indicators, very cool indeed. I look forward to trying this one out.
HPotter
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Thank you.
HermanBrummer
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Wow, this works great. Exactly, what I needed.
HPotter
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Very cool!
kanwarshikher
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@HPotter,
Hi can you plz send me the amibroker afl for the above Elher fisher code as the mention above ( mentioned code is not working in amibroker)