Applying the Inverse Fisher Transform to RSI Trigger Levels

Summary

The document describes an RSI transformation attributed to John Ehlers, intended to make trigger points easier to distinguish. It first calculates RSI, shifts and scales the readings around zero, applies the inverse Fisher transform, and maps the output back to a 0–100 style range. The example uses a default RSI period of 14 and displays reference levels at 20, 50, and 80. The period can be adjusted.

The description notes that Ehlers recommends smoothing the transformed series with a weighted average, but this implementation omits that step. It supplies an indicator formula and a platform-specific example, but offers no chart study, rules for entering or exiting positions, or performance evidence. The transformed RSI can help define potential signals, yet the document does not establish that the reference levels are profitable or suitable across assets and time frames. The included privacy notice is unrelated to the indicator.

Key ideas

• The indicator transforms RSI values to make potential trigger points more distinct.
• It centers and scales RSI before applying the inverse Fisher transform, then returns the output to a familiar bounded range.
• The example uses a 14-period RSI and shows reference levels at 20, 50, and 80.
• The implementation omits the weighted-average smoothing recommended by Ehlers.
• The document provides no evidence that its levels generate profitable trades across markets or time frames.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.