The indicator is based on the assumption that the price does not have Gaussian density but something similar can be created by normalizing the price and applying Fisher Transform. As a result, fluctuation tops will definitely show price reversals. The recommended period is equal to 10.
Fisher indicator calculates minimum and maximum price levels in previous history, determines direction of a trend and forecasts its reversal. Fisher can be especially useful as a basic indicator trend in a trading system. Fisher positive value is a first buy signal, while negative value forms a sell signal. It is possible to find optimal period for maximums and minimums calculation (the only Fisher indicator parameter) to avoid false signals.
Fisher (red) and Trigger (blue) lines crossings may also be used similar to Stochastic Oscillator signals.
Translated from Russian by MetaQuotes Software Corp.
Original code: https://www.mql5.com/ru/code/537
The indicator shows the moments of the market acceleration. Besides, it indicates appropriate time for buying, selling and market exit.StepMA_Line
StepMA is executed as a moving average.