OPEN-SOURCE SCRIPT
Rainbow Fisher - AYNET
The Rainbow Fisher Indicator is inspired by John Ehlers' work on the Fisher Transform, a tool designed to normalize price movements and highlight overbought and oversold conditions. This script combines Ehlers' Fisher Transform with a rainbow visualization for enhanced trend analysis.
Summary of the Code
Fisher Transform Calculation:
The indicator calculates the Fisher Transform based on normalized high-low price data (hl2), which emphasizes turning points in market trends.
Rainbow Visualization:
The Fisher line is dynamically colored using a rainbow gradient to visually represent the magnitude and direction of market movements.
Overbought/Oversold Levels:
Configurable horizontal lines mark thresholds (1.5 for overbought and -1.5 for oversold by default), helping traders identify extremes in price action.
Signal Labels:
Labels are displayed when the Fisher line crosses the overbought or oversold levels, providing clear visual cues for potential market reversals.
Acknowledgment:
This indicator is an homage to John Ehlers' groundbreaking work in digital signal processing for financial markets.
How to Use
Trend Reversal Detection:
Use the overbought and oversold levels to identify potential turning points in market trends.
Momentum Analysis:
Observe the rainbow-colored Fisher line for directional cues and the strength of price movements.
Customization
Adjust the Fisher Transform length to refine sensitivity.
Modify overbought/oversold levels to align with your trading strategy.
Enable or disable the rainbow effect for simplicity or added clarity.
Let me know if you’d like further refinements or additional features! 🌈
Summary of the Code
Fisher Transform Calculation:
The indicator calculates the Fisher Transform based on normalized high-low price data (hl2), which emphasizes turning points in market trends.
Rainbow Visualization:
The Fisher line is dynamically colored using a rainbow gradient to visually represent the magnitude and direction of market movements.
Overbought/Oversold Levels:
Configurable horizontal lines mark thresholds (1.5 for overbought and -1.5 for oversold by default), helping traders identify extremes in price action.
Signal Labels:
Labels are displayed when the Fisher line crosses the overbought or oversold levels, providing clear visual cues for potential market reversals.
Acknowledgment:
This indicator is an homage to John Ehlers' groundbreaking work in digital signal processing for financial markets.
How to Use
Trend Reversal Detection:
Use the overbought and oversold levels to identify potential turning points in market trends.
Momentum Analysis:
Observe the rainbow-colored Fisher line for directional cues and the strength of price movements.
Customization
Adjust the Fisher Transform length to refine sensitivity.
Modify overbought/oversold levels to align with your trading strategy.
Enable or disable the rainbow effect for simplicity or added clarity.
Let me know if you’d like further refinements or additional features! 🌈
Skrip open-source
Dengan semangat TradingView yang sesungguhnya, penulis skrip ini telah menerbitkannya sebagai sumber terbuka, sehingga para trader dapat memahami dan memverifikasinya. Hormat untuk penulisnya! Anda dapat menggunakannya secara gratis, namun penggunaan kembali kode ini dalam publikasi diatur oleh Tata Tertib. Anda dapat memfavoritkannya untuk digunakan pada chart
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