StockFetcher Forums · General Discussion · Fisher Transform(10) as an oscillator?<< >>Post Follow-up
pirate67
99 posts
msg #115411
Ignore pirate67
9/18/2013 12:34:56 AM

The FT is a very useful trading indicator. Would anybody know how to make it into an oscillator? .

johnpaulca
11,315 posts
msg #115413
Ignore johnpaulca
9/18/2013 9:45:14 AM

I believe it's already an oscillator in TOS.

pirate67
99 posts
msg #115420
Ignore pirate67
9/18/2013 1:50:46 PM

Thanks for your comment JP. By SF definition in the index, the indicator is normalized and that is clear from looking at screens. You are probably correct that it is already an oscillator, however if that is true, what would be the boundaries? Most results cluster between -3 and +3, but there are many exceptions. Readings much higher like 5's and 6's are rare but seem to have significance. For example on 3/28/2013 NX's Fisher transformation (10) was -6.06, within a week or so the stock made a big rally and reversed again when the indicator reached 3.97. What I would like to find out if there are any numbers that align well with reversals.

four
4,012 posts
msg #115426
Ignore four
modified
9/18/2013 10:43:13 PM

http://www.stockfetcher.com/forums/Indicators/IndPosition/37597

--

IndPosition
Parameters Indicator
Length
Usage indposition(indicator,length)
Description This measure returns the current position of an indicator with respect to the min and max of the measure over the specified number of days.

The value returned will be between 0 and 1. Values closer to 0 indicate the measure is closer to the lower bound in the given period of time. Values closer to 1 indicator the current value of the measure is closer to making a high over the specified period of time.

--
--

Fetcher[
set{x, indposition(Fisher Transform(10),5)}
draw x crossed below 0.1
draw Fisher Transform(10) above 0
draw Fisher Transform(10) line at 0
add column annual dividend yield
offset 1
sp500
]



pirate67
99 posts
msg #115429
Ignore pirate67
9/19/2013 1:11:34 AM

Thanks Four, it seems like your filter would almost act like an oscillator if the time period was many days(like 200). I'd still be curious if the Fisher Transform theoretically had no limits or if it was truly an oscillator

four
4,012 posts
msg #115438
Ignore four
modified
9/19/2013 8:55:30 AM

http://www.forextradingzone.org/fx-Momentum_Indicator

-- see above for unbounded oscillator (Momentum)



pirate67
99 posts
msg #115444
Ignore pirate67
9/19/2013 1:29:27 PM

Four, from your link:
"Since momentum is unbounded however, we don't have an objective way to determine exactly how "overbought" or "oversold" the market is. What we can do instead, is look at historical data for the particular instrument we are charting, and determine suitable "overbought" and "oversold" areas based on past levels"

I guess I can conclude that my unanswered question is moot. It does seem like it is unbounded Your above filter should do what would be needed. My thanks to you and JP.

StockFetcher Forums · General Discussion · Fisher Transform(10) as an oscillator?<< >>Post Follow-up

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