OPEN-SOURCE SCRIPT
Fisher Transform Trend Navigator [QuantAlgo]

🟢 Overview
The Fisher Transform Trend Navigator applies a logarithmic transformation to normalize price data into a Gaussian distribution, then combines this with volatility-adaptive thresholds to create a trend detection system. This mathematical approach helps traders identify high-probability trend changes and reversal points while filtering market noise in the ever-changing volatility conditions.

🟢 How It Works
The indicator's foundation begins with price normalization, where recent price action is scaled to a bounded range between -1 and +1:
Pine Script®
This normalized value then passes through the Fisher Transform calculation, which applies a logarithmic function to convert the data into a Gaussian normal distribution that naturally amplifies price extremes and turning points:
Pine Script®
The smoothed Fisher signal is then integrated with an exponential moving average to create a hybrid trend line that balances statistical precision with price-following behavior:
Pine Script®
To filter out false signals and adapt to market conditions, the system calculates dynamic threshold bands using volatility measurements:
Pine Script®
When price momentum pushes through these thresholds, the trend line locks onto the new level and maintains direction until the opposite threshold is breached:
Pine Script®

🟢 Signal Interpretation
The Fisher Transform Trend Navigator applies a logarithmic transformation to normalize price data into a Gaussian distribution, then combines this with volatility-adaptive thresholds to create a trend detection system. This mathematical approach helps traders identify high-probability trend changes and reversal points while filtering market noise in the ever-changing volatility conditions.
🟢 How It Works
The indicator's foundation begins with price normalization, where recent price action is scaled to a bounded range between -1 and +1:
highestHigh = ta.highest(priceSource, fisherPeriod)
lowestLow = ta.lowest(priceSource, fisherPeriod)
value1 = highestHigh != lowestLow ? 2 * (priceSource - lowestLow) / (highestHigh - lowestLow) - 1 : 0
value1 := math.max(-0.999, math.min(0.999, value1))
This normalized value then passes through the Fisher Transform calculation, which applies a logarithmic function to convert the data into a Gaussian normal distribution that naturally amplifies price extremes and turning points:
fisherTransform = 0.5 * math.log((1 + value1) / (1 - value1))
smoothedFisher = ta.ema(fisherTransform, fisherSmoothing)
The smoothed Fisher signal is then integrated with an exponential moving average to create a hybrid trend line that balances statistical precision with price-following behavior:
baseTrend = ta.ema(close, basePeriod)
fisherAdjustment = smoothedFisher * fisherSensitivity * close
fisherTrend = baseTrend + fisherAdjustment
To filter out false signals and adapt to market conditions, the system calculates dynamic threshold bands using volatility measurements:
dynamicRange = ta.atr(volatilityPeriod)
threshold = dynamicRange * volatilityMultiplier
upperThreshold = fisherTrend + threshold
lowerThreshold = fisherTrend - threshold
When price momentum pushes through these thresholds, the trend line locks onto the new level and maintains direction until the opposite threshold is breached:
if upperThreshold < trendLine
trendLine := upperThreshold
if lowerThreshold > trendLine
trendLine := lowerThreshold
🟢 Signal Interpretation
- Bullish Candles (Green): indicate normalized price distribution favoring bulls with sustained buying momentum = Long/Buy opportunities
- Bearish Candles (Red): indicate normalized price distribution favoring bears with sustained selling pressure = Short/Sell opportunities
- Upper Band Zone: Area above middle level indicating statistically elevated trend strength with potential overbought conditions approaching mean reversion zones
- Lower Band Zone: Area below middle level indicating statistically depressed trend strength with potential oversold conditions approaching mean reversion zones
- Built-in Alert System: Automated notifications trigger when bullish or bearish states change, allowing you to act on significant developments without constantly monitoring the charts
- Candle Coloring: Optional feature applies trend colors to price bars for visual consistency and clarity
- Configuration Presets: Three parameter sets available - Default (balanced settings), Scalping (faster response with higher sensitivity), and Swing Trading (slower response with enhanced smoothing)
- Color Customization: Four color schemes including Classic, Aqua, Cosmic, and Custom options for personalized chart aesthetics
Script open-source
Dans l'esprit de TradingView, le créateur de ce script l'a rendu open-source, afin que les traders puissent examiner et vérifier sa fonctionnalité. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais n'oubliez pas que la republication du code est soumise à nos Règles.
👉 Access the best tools for trading & investing here (3-day FREE trial): joinquantalgo.com/
📩 DM if you need any custom-built indicators or strategies.
📩 DM if you need any custom-built indicators or strategies.
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.
Script open-source
Dans l'esprit de TradingView, le créateur de ce script l'a rendu open-source, afin que les traders puissent examiner et vérifier sa fonctionnalité. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais n'oubliez pas que la republication du code est soumise à nos Règles.
👉 Access the best tools for trading & investing here (3-day FREE trial): joinquantalgo.com/
📩 DM if you need any custom-built indicators or strategies.
📩 DM if you need any custom-built indicators or strategies.
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.