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Fisher Transform

What is the Fisher Transform?​

The Fisher Transform, developed by John Ehlers, is a technical indicator that converts prices into a Gaussian normal distribution. This transformation sharpens turning points and makes trend reversals easier to identify.

The result oscillates around zero, with values moving rapidly between extreme positive and negative levels, helping traders detect early momentum shifts and reversal zones.

How to Add Fisher Transform?​

  1. Click on the "+" button in the Indicators section.
  2. Select Fisher Transform.
  3. Choose the data source (typically Close or Median Price).
  4. Configure the Length, Time Frame, and Offset.
  5. Click "Add" to save the indicator.

Configurable Parameters in Fisher Transform​

1. On Data (Source Selection)​

  • Fisher Transform typically uses Close, Median, or Typical Price.
  • Select the appropriate source if you have multiple datasets.
  • If none is selected, the system applies Fisher to the default price column.

2. Time Frame​

  • Defines the candle timeframe used for Fisher calculation.
  • Example: If set to 15, Fisher Transform operates on 15-minute data.

3. Length​

  • Determines how many periods Fisher Transform uses for normalization.
  • A common default is 9 periods.

When Length is Set Very Low (e.g., 2)​

Using universal, simple wording:

  • Small length values make Fisher Transform extremely sharp and jumpy.
  • Fisher reacts to very recent price changes, sometimes flipping direction quickly.
  • With length 2, Fisher asks: “How has price changed in just the last couple of candles?”
  • This leads to very early but very noisy signals.

In short: short length = ultra-sensitive, fast flips, more false reversals.

4. Offset​

  • Shifts the Fisher plot forward or backward on the chart.

Offset Guide:

  • Positive Offset → shifts Fisher forward
  • Negative Offset → shifts Fisher backward

Applying Fisher Transform on Other Price Types​

Fisher Transform can be applied to any single-price series (Close, Median, Typical, Weighted Close).

Example

Apply Fisher Transform on Volume-based candles, Heikin-Ashi closes, or Renko close values to detect structured momentum shifts.

Element Name​

Each Fisher Transform indicator receives a unique Element Name, making it easy to reference throughout your strategy rules.

Use Cases for Fisher Transform​

  • Reversal Identification
    → Fisher crossings above zero often suggest bullish momentum; below zero suggest bearish momentum.

  • Early Trend Detection
    → Rapid turns in Fisher help spot early trend shifts.

  • Overbought/Oversold Signals
    → Extreme peaks and troughs indicate potential exhaustion.

  • Divergence Analysis
    → Price making new highs while Fisher does not can indicate weakening strength.

Next Steps​

✅ Add Fisher Transform to your strategy
✅ Use it for momentum shifts and reversal detection
✅ Combine Fisher with EMA, CCI, or RSI for cleaner entries
✅ Use Fisher crossovers inside Conditions & Actions