Fisher Transform of stochastics
The Fisher Transform of Stochastics in Amibroker likely involves transforming stochastic oscillator values to generate clearer buy or sell signals. While not directly reliant on the Amibroker data feeder, this transformation aims to smooth out stochastic signals, aiding traders in making more informed decisions based on refined indications of overbought or oversold conditions.
/_SECTION_BEGIN("Fisher Transform of Stochastics");
// Fisher transform of stochastics
//
//It is an improvement on the Stochastics. Identifying turning points better with less wipsaws.
//Good for swing trading.
//
function FisherSto(array, period, factor) {
MaxH = HHV(array, period);
MinL = LLV(array, period);
Range = MaxH - MinL;
sto = (array - MinL)/(MaxH - MinL);
Value1 = AMA(2*(sto - 0.5), factor);
Value1 = IIf(Value1 > 0.999, 0.999, IIf(Value1 < -0.999, -0.999, Value1));
Fish = AMA(log((1 + Value1)/(1 - Value1)), 0.5);
return fish;
}
// Parameters
period = Param("Period", 14, 3, 35, 1);
factor = 0.10;
price = AMA(Avg,0.5);
StoFR = FisherSto(price, period, factor);
temp = Ref(StoFR,-1);
Plot(StoFR, "Stochastic", colorRed,styleThick);
Plot(Ref(StoFR,-1), "Signal", colorPink,styleDashed);
PlotGrid(2, colorLightGrey);
PlotGrid(-2, colorLightGrey);
Buy=Cross(StoFR,temp);
Sell=Cross(temp,StoFR);
PlotShapes(IIf(Buy,shapeUpArrow,shapeNone) ,colorGreen,0,Graph0,-5); PlotShapes(IIf(Sell,shapeDownArrow,shapeNone),colorRed,0,Graph1,5);
_SECTION_END();