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Fisher Transform of Stochastics for Amibroker AFL

Fisher Transform of Stochastics for Amibroker AFLThe Fisher Transform Stochastic Amibroker Afl used to Stocks and Commodities. The is an improvement on the stochastic indicator by using the Fisher Transform. The oscillator is formed first from a multi-layered Weighted Moving Average, which is then used as the base for the Stochastic calculation.

The is an improvement on the stochastic indicator by using the Fisher Transform. It has reduced lag and less whipsaws because the Fisher Transform makes the indicator snap into the overbought and oversold areas.

This indicator’s definition is further expressed in the condensed code given in the calculation below.

Similar Formulas


_SECTION_BEGIN("Fisher Transform of Stochastics");
// Fisher transform of stochastics
//It is an improvement on the Stochastics. Identifying turning points better with less wipsaws.
//Good for swing trading.

function FisherSto(array, period, factor) {
   MaxH = HHV(array, period);
   MinL = LLV(array, period);
   Range = MaxH - MinL;
   sto  = (array - MinL)/(MaxH - MinL);

   Value1 = AMA(2*(sto - 0.5), factor);
   Value1 = IIf(Value1 > 0.999, 0.999, IIf(Value1 < -0.999, -0.999, Value1));

   Fish = AMA(log((1 + Value1)/(1 - Value1)), 0.5);

   return fish;

// Parameters
period = Param("Period", 14, 3, 35, 1);
factor = 0.10;

price  = AMA(Avg,0.5);
StoFR = FisherSto(price, period, factor); temp = Ref(StoFR,-1);

Plot(StoFR, "Stochastic", colorRed,styleThick); Plot(Ref(StoFR,-1),"previous", colorPink,styleDashed);


PlotShapes(IIf(Buy,shapeUpArrow,shapeNone) ,colorGreen,0,Graph0,-5); PlotShapes(IIf(Sell,shapeDownArrow,shapeNone),colorRed,0,Graph1,5);


There is a substantial risk of loss associated with trading in Stock Markets. Losses can and
will occur. No responsibility for loss occurred to any person acting or refraining to act as a result of using the AFL written by their respective creators and published in this Blog for sharing of knowledge can be accepted by the Blog owner.

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