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_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();