2/3 See red fingers on right chart for a bearish perspective:
- Weiss Wave's remarkably high volume (histogram) at peak suggests fomo buying. - CCI identified this extreme condition and reversed. - This occured at Fisher Transform 3.0 deviation and BB upper band. - Renko bricks are below iFish MA. - Price is below 7500.
3/3 Buy Signal if 1H Renko Traditional w/ 60 Box Size Fisher Transform (Fisher line) finds support and reverses from zero line. You can set an alert on Fisher crossing 0.
"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 oscillator moves above and below a zero line and has clear and sharp turning points, simplifying the identification of trend reversals. It is commonly used as part of a trading strategy that takes price action into account and usually is not the only tool a trader relies on."
"How probabilities are measured by (-/+) deviations on Fisher Transform?
A) -If Fisher transform has a value of −1, it has a value of negative one standard deviation and therefore there is a 32 percent chance prices will go lower.
B) -If the transformed indicator has a value of −2, it has a value of negative two standard deviations, and therefore there is only an 8 percent chance prices will go lower.
This is a high-probability buying opportunity.
C) At a level of −3, the negative 3 standard deviations means there is only a 2 percent chance of the prices going lower.
FT values are symmetrical, so positive deviations are high-probability indications to exit a long position or to sell short.
If the prices are normalized to fall within the range from –1 to +1 and subjected to the TF, the extreme price movements are relatively rare events. This means the turning points can be clearly and unambiguously identified." - moe_mentum
Russslayer
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As always quality analysis! Thank you.
zerocashcool
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@Russslayer, It means a lot to me. Thank you very much. :)