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Osi Cycle-Adaptive Fisher Transform Indicator chart

Osi Cycle-Adaptive Fisher Transform

This indicator is based on the calculation for the Fisher Transform of price, but the calculation period used, on each bar, is a fixed, user-selectable, factor of the period of the dominant wave as measured on that bar: quarter-wave, half-wave or full-wave.

The user may also elect to use a fixed period, in which case it is no different from the standard Fisher Transform.

As with quite a few other indicators from us, the user can choose to use a Price Proxy instead of the actual price, when calculating the indicator. The Price Proxy will generally result in a smoother plot.

Typical Usage Scenarios

This indicator is used in the same manner as the Fisher Transform. The real advantage is that the period of calculation is adjusted, depending on the market's dominant cycle. An internet search will show the many ways in which the Fisher Transform is used, whether as an overbought/oversold oscillator, or as a divergence trading tool.

The Fisher Transoform is used by many traders in a simple fashion of going long when it crosses above the zero line, and going short when it crosses below. Manually drawn arrows indicate such a use. We also know traders who use it to try to determine so-called Elliott Waves, or use it as a divergence spotter for reversals.

The calculation period, and the method (in this case, "Cycle"), are indicated by the information panel at the bottom. The parameter choice is part of the chart label in the upper text; in this case "FullWave".

NB: Note that the arrows were not drawn by the indicator: they were manually drawn to indicate a usage scenario.

Osi Cycle-Adaptive Fisher Transform parameters

Indicator Parameters

  1. Parameters

    Calculation Method

    Method used to determine the period that is used for calculations. This can be the Cycle period, or a fixed period, specified by the user.

    Sampling Period

    Length of the 'Wave Period' used to calculate the Fisher Transform plot:
    The FullWave uses the length of the dominant wave;
    The HalfWave uses half the length of the dominant wave;
    The QuarterWave uses a quarter the length of the dominant wave.

    FixedLookbackPeriod

    If using a fixed period, the Lookback period used for calculations.

    Use Median Price

    Use the (High + Low)/2, instead of the Close, for calculating the Plot.

  2. Bar Updates

    Intraday Bar Updates

    Method for calculation updates on intraday timeframes. Will overide any CalculateOnBarClose setting. 'OnClose' will always calculate on bar close; 'Intrabar' will always update periodically, based on the UpdateInterval setting. For non-intraday timeframes, CalculateOnBarClose will always be false.

    Update Interval

    Time interval (in minutes - 1 to 60) at which to update the plot.

    Update Tick Count

    Tick count at which to update the plot intraday, during the interval that updates take place, per the 'Update Interval' setting. Smaller values will mean more updates per time slot. Reduce this value if the plot shows artifacts such as missing areas in the plot.

    Updates Per Bar

    On minute-based charts, the minimum number of updates per 'period value'. Between this and the 'Update Interval', the plot is updated using whichever parameter that causes more frequent updates.

  3. Plot Colors

  4. Information Panel

    Shows an information panel on the chart, showing information about the value of the dominant period, being used for calculating the indicator on the current bar, and how it is being calculated. This period varies, depending on market. action.

  5. Price Proxy

    Median Filter Lookback

    Lookback period used for the median filter which is used to filter out outliers.

    Tuning Parameter Lookback

    Lookback period used for the tuning parameter, which is used to adjust for volatility.

 

Price: $197.00

 

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