Fisher Transform price
The Fisher Transform Price AFL in Amibroker uses the Fisher Transform indicator to identify potential price reversals. With Amibroker data feed, this indicator offers insights into turning points in the market by transforming prices into a Gaussian normal distribution. Traders utilize this tool to identify potential entry or exit points, improving trade timing.
/_SECTION_BEGIN("Fisher Transform");
//SetBarsRequired(200, 0);
// Ehlers formulas
// from Ehlers, John F. Cybernetic Analysis for Stocks and Futures. Wiley. 2004.
// Chapter 1, p. 1. Code on p. 7.
function Normalize(array, arraylen)
// Figure 1.7 on p. 7
{
MaxH = HHV(array, arraylen);
MinL = LLV(array, arraylen);
Value1[0] = array[0]; // Initialize as array
for(i = 1; i < BarCount; i++)
{
Value1[i]=.5*2*((array[i]-MinL[i])/IIf(MaxH[i]-MinL[i]==0,1,MaxH[i]-MinL[i])-.5)+.5*Value1[i-1];
if (Value1[i] > .9999) Value1[i] = .9999;
if (Value1[i] < -.9999) Value1[i] = -.9999;
}
return Value1;
}
function Fisher(array)
// Figure 1.7 on p. 7
{
F = array;
F = .25 * log((1+ array)/(1 - array)) + .5 * Ref(F, -1);
return F;
}
Med = (H+L)/2;
// Fisher Transform
FisherXform = Fisher(Normalize(Med, 10));
Plot(FisherXform, "Fisher Transform", colorRed, styleThick);
Plot(Ref(FisherXform, -1), "", colorPink, styleDashed);
PlotGrid(2, colorLightGrey);
PlotGrid(-2, colorLightGrey);
_SECTION_END();