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! 🌈
Script open-source
Dans le plus pur esprit TradingView, l'auteur de ce script l'a publié en open-source, afin que les traders puissent le comprendre et le vérifier. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais la réutilisation de ce code dans une publication est régie par nos Règles. Vous pouvez le mettre en favori pour l'utiliser sur un graphique.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.