The “Reverse Fisher Transform” provide users the exact price level input needed for the fisher transform to reach a certain value (crossover, oversold, overbought).
The fisher transform indicator is an oscillator that helps to identify trend reversals and can be applied to any financial instrument. It was created by J.F. Ehlers and transforms prices into a Gaussian normal distribution.
The source used here is the closing price instead of traditional source high + low /2 to eliminate overshoot reaction due to recent price.
“Overbought and Oversold Style” changes the display of the overbought and oversold price of the fisher transform .
Option “Line Levels” plots horizontal lines of the price when fisher reaches overbought and oversold level.
Overbought Oversold Line Levels:
Option “Bands” plots the historical running value of the price when fisher reaches overbought and oversold level. The user should tick off log display of the chart when they choose “Bands” option.
Overbought Oversold Bands:
Line Levels” and “Bands” have the same current value just different displays.
“Fisher Cross Smoothing” enables users to smooth out the reverse fisher. It turns the reverse fisher into a close to moving average smooth filter.
Smoothed Reverse Fisher:
Reverse Fisher Indicator Link: