Building an Aroon Oscillator from NWMA with an Inverse Fisher Transform

Summary

This document describes a technical indicator that combines a new weighted moving average (NWMA), an Aroon oscillator, and an inverse Fisher transform. The example uses a weighted moving-average type, with NWMA lengths of 89 and 21 and a five-period Aroon calculation. It first smooths closing prices through two averages, combines them into the NWMA, then measures the relative locations of recent highs and lows to form the oscillator. The inverse Fisher step transforms that value for display, alongside a zero crossover reference line.

The parameters can be changed to use different periods and average types, so the example is configurable rather than a fixed trading system. The document offers an indicator construction and implementation for ProRealTime, but it does not define entry or exit rules, provide a trading rationale beyond the indicator’s construction, or show performance evidence. It also does not explain how to handle parameter selection or test whether the transformed signal adds value. The privacy notice is administrative material unrelated to the indicator.

Key ideas

• The indicator applies an NWMA to closing prices before calculating an Aroon oscillator.
• The example combines 89- and 21-period averages with a five-period Aroon calculation.
• An inverse Fisher transform is applied to the oscillator for its displayed output.
• The periods and moving-average type can be adjusted through parameters.
• The document supplies no trade rules or evidence of profitability.

Tags

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