What is Fisher Transform? The Fisher Transform is a technical indicator created by John F. Ehlers that converts prices into a Gaussian normal distribution.
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.
Included:
Zero-line and signal cross options for bar coloring
Customizable overbought/oversold thresh-holds
Alerts
Signals
***Please note, the Goertzel Cycle Algorithm is processor heavy, so this indicator will take some time to load.
I’m confused as to the implementation of the goertzel algorithm here. The output of the goertzel function is the number of cycles detected , not the length or lengths of the cycles. The number of cycles is then used for a lookback to the highest high and lowest low of a period equal to the number of cycles. Thus, if 3 cycles are detected with lengths 5,10 and 15 in one case, and 3 cycles are detected with lengths 30 , 50 and 85 in another case, they would be treated exactly the same. The output of the goertzel function is 3 for each, and the look back for the highs and lows that is fed into the fisher function is based on a lookback of 3 for each. If the point is to use Goertzel here, would a better approach be to set the output to the dominant cycle of top N dominant cycles , and then make length based on these cycles ? The fisher line wound be drawn on each cycle or you’d have to create a composite( if more than one cycle is used obviously). Or maybe I’m just missing something here. Thoughts?