Centering RSI Around Zero Before Applying the Inverse Fisher Transform

Summary

This short description presents an RSI-based indicator attributed to John Ehlers. It first calculates the standard Relative Strength Index, adjusts its values so they are centered around zero, and then applies the inverse Fisher transform. The stated purpose is to make potential trigger points more clearly defined.

The document gives no equations, parameters, trigger thresholds, chart examples, or evidence from testing. It also does not explain how the transformed output should be interpreted in a complete trading system, or whether the unsmoothed version behaves differently from smoothed alternatives. The idea is therefore an indicator construction summary, not a validated strategy; traders would need to define rules and evaluate them on suitable data before relying on its signals.

Key ideas

• The indicator begins with a conventional RSI calculation.
• RSI values are shifted to be centered around zero before transformation.
• An inverse Fisher transform is applied to the adjusted values to clarify potential triggers.
• No signal thresholds, implementation details, or performance evidence are supplied.

Tags

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