Market prices do not have a Gaussian probability density function as many traders think. Their probability curve is not bell-shaped. But trader can create a nearly Gaussian PDF for prices by normalizing them or creating a normalized indicator such as the relative strength index and applying the Fisher transform. Such a transformed output creates the peak swings as relatively rare events. Fisher transform formula is: y = 0.5 * ln ((1+x)/(1-x)) The sharp turning points of these peak swings clearly and unambiguously identify price reversals in a timely manner.
You can change long to short in the Input Settings Please, use it only for learning or paper trading. Do not for real trading.
@HPotter, I read the code and i didn't found repaint evidence, which factor makes it repaint?
HPotter
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@kateryne.hf, What do you mean - repaint?
Jer924
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Great work and very appreciative. I'm playing around with this indicator as a price action support tool. And pardon for my lack of coding expertise, but what lines would I need to change if I wanted to backtest crossing upward through 0 is a long position and crossing down through 0 is a short?
I'm assuming it has to do with this portion of the code?
pos = iff(nFish > nz(nFish[1]), 1,
iff(nFish < nz(nFish[1]), -1, nz(pos[1], 0)))
possig = iff(reverse and pos == 1, -1,
iff(reverse and pos == -1, 1, pos))
if (possig == 1)
strategy.entry("Long", strategy.long)
if (possig == -1)
strategy.entry("Short", strategy.short)
@HPotter, Thank you very much.... I really enjoy this indicator and the more I play with it the more I like it. I'm not sure why more people don't use or reference it.... could be I'm missing something, but will figure it out... your location indicates Russia... Merry Christmas and Happy New Year... may you enjoy a profitable new year!
HPotter
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@Jer924, You are welcome. Have a nice year too. :)
iamtailormademoney
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Hello. Does fisher transform backpaint or repaint? Can it be changed into a histogram?
HPotter
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@iamtailormademoney, For histogram you can add line style = histogram parametr in the plot. About back paint, if I understand correctly, you can use source script.