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In the November 2002 issue of TASC, Ehler discusses the Fisher Transform
function which is a fairly simple piece of code:
Inputs: Price((H+L)/2),Len(10);
Vars: MaxH(0), MinL(0),Fish(0);
MaxH = Highest(Price, Len);
MinL = Lowest(Price, Len);
if (MaxH - MinL)<>0 then Value1 = .33*2*((Price - MinL)/(MaxH - MinL) -
.5) + .67*Value1[1];
If Value1 > .99 then Value1 = .999;
If Value1 < -.99 then Value1 = -.999;
Fish = .5*Log((1 + Value1)/(1 - Value1)) + .5*Fish[1];
Plot1(Fish, "Fisher");
Plot2(Fish[1], "Trigger");
Plot3(0,"0");
He also talks about another plot: "I multiplied the rate of change of
the Fisher Transform by 10 and plotted this amplified rate of change
over the Fisher transform." The crossings show turning points.
However, I have not been able to duplicate the ROC plot correctly. In
Trader's Tips, the MetaStock code is simply given as:
10*ROC(fish,1,$)
I've tried a few variations including:
Plot4(10*RateOfChange(fish, 1));
but they simply create spikes consisting of very large numbers.
Can anyone please show me how to do it?
Ian
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