Modified smooth transform — Indicator by sapientrade

study(title="FISHER/Modified", shorttitle="smooth transform")

/// Define graph data
src = close
src_high = high
src_low = low

/// User input length
fisherlen = input(21, minval=1, title="Transform Length")
//fourier func
// Fisher
Price = (src_high + src_low) / 2.
MaxH = highest(src_high, fisherlen)
MinL = lowest(src_low, fisherlen)

Value1 = max(-0.9999, min(0.9999, 0.5 * 2 * ((Price - MinL) / (MaxH - MinL) - 0.5) + 0.5 * nz(Value1)))

Fish = 0.25 * log((1 + Value1) / (1 - Value1)) + 0.5 * nz(Fish)

/// Plot
plot(Value1, color=green)
plot(nz(Fish), color=red) // trigger/signal line

// Background color
//sellSignal = (nz(Fish) < -0.3 and nz(Fish) > 0.9 * nz(Fish))
//bgcolor(sellSignal ? red : white, transp=90)

// Band range
band_green_top = hline(.6999)
band_green_bottom = hline(.9999)
fill(band_green_top, band_green_bottom, color=green, transp=90)

band_red_top = hline(-.6999)
band_red_bottom = hline(-.9999)
fill(band_red_top, band_red_bottom, color=red, transp=90)

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?

study(title="FISHER/Modified", shorttitle="Transform/Proprietary")

/// Define graph data
src = close
src_high = high
src_low = low

/// User input length
fisherlen = input(21, minval=1, title="Transform Length")
//fourier func
// Fisher
Price = (src_high + src_low) / 2.
MaxH = highest(src_high, fisherlen) 
MinL = lowest(src_low, fisherlen)

Value1 = max(-0.9999, min(0.9999, 0.5 * 2 * ((Price - MinL) / (MaxH - MinL) - 0.5) + 0.5 *  nz(Value1[1])))

Fish = 0.25 * log((1 + Value1) / (1 - Value1)) + 0.5 * nz(Fish[1]) 

/// Plot
plot(Value1, color=green)
plot(nz(Fish[1]), color=red) // trigger/signal line

// Background color
//sellSignal = (nz(Fish[1]) < -0.3 and nz(Fish[1]) > 0.9 * nz(Fish[1]))
//bgcolor(sellSignal ? red : white, transp=90)

// Band range
band_green_top = hline(.6999)
band_green_bottom = hline(.9999)
fill(band_green_top, band_green_bottom, color=green, transp=90)

band_red_top = hline(-.6999)
band_red_bottom = hline(-.9999)
fill(band_red_top, band_red_bottom, color=red, transp=90)