The indicator is an oscillator that helps to identify trend reversals and can be applied to any financial instrument. It was created by J.F. and transforms prices into a Gaussian normal distribution.
The original uses High + low /2 for source input of price. However, this can't be applied to reverse fisher because we want to know at what CLOSING price can make the fisher cross or reach a certain level. High and low are two variables. If we use hl2 , the reverse solution we get is the high + low /2 price, not the closing price. It's more useful to know the closing price from the reverse solution than hl2 , that's why we use close as the source in .
Settings functions explanation:
The length of the Reverse Fisheris the same as the oscillator.
"Show fisher cross value panel" and "Show overbought and oversold Panel" allows users to display or hide a panel with fisher crossing or overbought and oversold price.
"Overbought and Oversold Style" changes the display of the overbought and oversold price of the .
Option "Line Levels" plots horizontal lines of the price when fisher reaches overbought and oversold level.
Option "Bands" plots the historical running value of the price when fisher reaches overbought and oversold level. The user should tick off log display of the chart when they choose "Bands" option.
'Line Levels" and "Bands" have the same current value just different displays.
User can choose to plot or hide the overbought and oversold price by ticking and unticking the "plot overbought price" and "plot oversold price"
They can also adjust the oversold and overbought value of fisher (Default is 2 and -2).
"Fisher Cross Smoothing" enables users to smooth out the reverse fisher. It turns the reverse fisher into a close to moving average smooth filter.
User can adjust the length of smoothing to change the smoothness of the filter.
"Plot Crosses X" plots cross on the reverse fisher when fisher crosses.
There's a bug in Tradingview label system. When the background of the label is transparent, the text will get burry when we scroll in and out on the chart. When this happens, changing any settings on the panel could refresh the text display. It could also be avoided by ticking the "dark background" setting to make the background not transparent.
For prices that require more decimal places, users can type in the decimals places they want in the “decimal” setting.
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