Features

• A light-weighted indicator that efficiently identifies the upward and downward crossovers and marks them using vertical lines.
• It also finds regular and hidden divergences on the Fisher Transform oscillator.
• It works efficiently to detect the sharp reversals in price.
• Traders can also use it for scalping on smaller timeframes.
• All Metatrader alerts included.

Calculation of Fisher Transform indicator

Fisher Transform = ½ * ln [(1 + X) / (1 – X)]
Where,
ln is the natural logarithm and X represents the transformation of asset's price to a level between -1 and 1 for ease of calculation.

Trade Examples

Long Trade:

• Main-line cross above the 0.0 level after touching an extreme negative area.
• Upward crossover of main and signal line either in a positive or negative area. 
• Bullish regular or hidden divergence. 

Short Trade:

• Main-line cross below the 0.0 level after touching an extreme positive area.
• Downward crossover of main and signal line either in a positive or negative area.
• Bearish regular or hidden divergence.

Pro Tip:

Fisher transforms indicator can be very noisy and provide multiple false signals before the actual reversal takes place. Instead of using it as a standalone indicator, it's best to combine it with other indicators for trade confirmation.

Input Parameters

• Period: The integer value used to calculate the Fisher Transform main and signal line.
• Show Vertical Lines: If true, the indicator will draw vertical lines on each upward or downward crossover. To avoid unnecessary clutter, we recommend keeping it off.
• Get Crossover Alerts: If true, the indicator will provide alerts on each crossover.
• Regular/Hidden Divergence: You can turn on/off the divergence detection.
• Indicator Trendlines: If true, the indicator will draw the oscillator's trendlines for each successive divergence.
• Price Trendlines: If true, the indicator will draw the trendlines on the price chart for each successive divergence.