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.