Using the Inverse Fisher Transform on NonLag-Smoothed RSX

Summary

This short note describes an indicator that applies the Inverse Fisher Transform to a nonlag-smoothed version of RSX, a momentum oscillator related to RSI. It characterizes RSX as smoother than RSI and says the nonlag smoothing can be disabled by setting its period to one or less. The stated purpose of the transform is to emphasize extreme readings, making the resulting indicator usable for both trend-following and reversal-style interpretation.

The document does not provide calculation details, threshold rules, example charts, or empirical tests. It therefore explains the intended role of the transformation but does not specify how to generate entries, exits, or risk controls. Any use as a trading signal would require defining those rules and assessing them on appropriate data; the note itself offers no evidence that the indicator improves results.

Key ideas

• The indicator applies an Inverse Fisher Transform to nonlag-smoothed RSX.
• The note describes RSX as smoother than RSI.
• A nonlag smoothing period of one or less disables that smoothing step.
• The transform is said to emphasize extreme readings for trend or reversal interpretation.
• No signal thresholds, trading rules, or empirical evidence are supplied.

Tags

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