stockfetcher 975 posts msg #31818 
4/21/2004 9:05:20 AM
Inverse Fisher Transform (RSI) 

Parameters 
RSIPeriod
Weighted MA Period

Usage 
Inverse Fisher Transform(5,9)
Inverse Fisher(5,9)
IFT(5,9)


Description 
Developed by John Ehlers, the RSIbased inverse Fisher Transform is used to help clearly define trigger points. First, a specified length RSI is computed and adjusted so that the values are centered around zero. The inverse transform is then applied to these values. The inverse transform is effectively:
e^(2x)  1  e^(2x) + 1

The author then recommends smoothing this value using a weighted moving average. StockFetcher smooths this value using a weighted simple moving average of the length specified in the second parameter.
Resulting values range between 1.0 and 1.0 with bullish triggers occurring at crossovers of 0.5 and bearish triggers of 0.5.


Examples 

