Inverse Fisher Transform Applied to the Relative Vigor Index

Summary

The document describes the Relative Vigor Index (RVI) as a technical indicator intended to gauge the strength of recent price action and the possibility of continuation. It says the RVI compares the close with the price range and smooths the resulting values using an exponential moving average. The page then introduces an inverse Fisher transform applied to the RVI.

The transform is described as mapping values into a bounded range from minus one to plus one, with the stated aim of making overbought and oversold conditions easier to assess. However, the formula itself is absent from the supplied text, and no parameter choices, thresholds, worked examples, or trading rules are given. The document provides no backtest or other evidence that the transformed indicator improves signals or forecasts continuation. It is therefore a brief conceptual description rather than a reproducible strategy specification.

Key ideas

• The RVI compares closing-price placement with the security's price range.
• The described RVI smooths its values with an exponential moving average.
• An inverse Fisher transform is applied to the RVI values.
• The transform is intended to place readings between minus one and plus one for overbought and oversold assessment.
• The formula, trading rules, and performance evidence are not included.

Tags

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