Ehlers Fisher Transform of RSI Applied to Smoothed Prices

Summary

This indicator applies the Ehlers Fisher Transform to RSI calculated from a moving average of price. The transformation is intended to normalize RSI values and make changes in market conditions easier to see. Price smoothing can use simple, exponential, smoothed, or linear weighted moving averages, so the input can be filtered in several ways.

The indicator also offers floating levels, with an option to use fixed levels by setting the level period to one or less. The document suggests interpreting changes in the indicator’s color as possible signals. It provides no settings, chart examples, performance results, or rules for entries and exits, so it does not establish that the signals are profitable or suitable across markets. Traders would need to assess the effects of smoothing and level choices for their own timeframe and instrument.

Key ideas

• The indicator calculates RSI from a moving average of price before applying the Fisher Transform.
• Price filtering can use simple, exponential, smoothed, or linear weighted moving averages.
• Floating levels can be disabled by setting their period to one or less.
• Color changes are presented as possible signals, but no entry or exit rules are specified.

Tags

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