RAVI FX Fisher Indicator for Directional Trading Signals

Summary

The indicator combines the difference between fast and slow weighted moving averages with a ratio of average true ranges, then scales the result and applies a Fisher-style transformation. The default inputs use a fast length of 4 and a slow length of 49. The transformed value is displayed as a histogram, with positive and negative regions colored differently. Upper and lower trigger levels are also plotted, and the source price can be selected from common bar-price fields.

Although the title and plots present an indicator, the supplied source also contains strategy entry calls: it enters long whenever the transformed value is nonnegative and short otherwise. Those entries use the sign of the value rather than crossing the displayed trigger levels. Published settings identify a BTC/USDT futures sample on daily bars, but provide no results or evaluation. The document does not explain exits, protective stops, position sizing, or whether the plotted trigger levels should govern trading, so the code should be treated as an illustration rather than a validated trading system.

Key ideas

• The indicator transforms the normalized difference between fast and slow weighted moving averages.
• Average true range scaling contributes to the calculation before the Fisher-style transformation.
• The displayed trigger levels do not control the source’s long and short entries.
• The code enters long for nonnegative readings and short for negative readings.
• No performance evidence, exit rules, or risk controls are provided.

Tags

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