The 3 IFT based indicators in this chart are:
- Inverse Fisher on (IFTRSI)
- Inverse Fisher on (IFTMFI)
- Inverse Fisher on CyberCycle (IFTCC)
Suggested method to use any IFT indicator is to buy when the indicator crosses over –0.5 or crosses over +0.5 if it has not previously crossed over –0.5 and to sell short when the indicators crosses under +0.5 or crosses under –0.5 if it has not previously crossed under +0.5.
More info: http://www.mesasoftware.com/Papers/THE%20INVERSE%20FISHER%20TRANSFORM.pdf
You can use these indicators by doing "Make it mine" (Click on "Share" to open the dialog box with this button).
Let me know what you think, would love to hear how these indicators are used and how effective these are for other instruments.
// // @author LazyBear // If you use this code in its orignal/modified form, do drop me a note. // study("Inverse Fisher Transform RSI [LazyBear]", shorttitle="IFTRSI_LB") s=close length=input(14, "RSI length") lengthwma=input(9, title="Smoothing length") calc_ifish(series, lengthwma) => v1=0.1*(series-50) v2=wma(v1,lengthwma) ifish=(exp(2*v2)-1)/(exp(2*v2)+1) ifish plot(calc_ifish(rsi(s, length), lengthwma), color=orange, linewidth=2) hline(0.5, color=red) hline(-0.5, color=green)
I play around with indicators a lot but actually pay more attention to structure of my options trades than detailed price movement but it does help my confidence. Thanks again and keep smiling!