1. The Special Fisher Transform: Overview Indicator Use: General Guidelines ) Bullish Bearish ) Correction in Uptrend 5

Transcription

1 The Special Fisher Transform Indicator Table of Contents 1. The Special Fisher Transform: Overview 2 2. Indicator Use: General Guidelines 3 2.1) Bullish Bearish 4 2.3) Correction in Uptrend 5 2.4) Bear Rally 6 3. Examples 7 3.1) EURUSD Forex Long on 15 min Chart 7 3.2) Apple Computer Inc.(AAPL) Short on 180 Ticks Chart 8 3.3) Apple Computer Inc.(AAPL) Long Term Position on Monthly Chart 9 3.4) Netflix Inc. (NFLX) Bust: Short on Weekly Chart Alerts Disclaimer 12 1 Copyright T-Valuation 2012

2 1)The Special Fisher Transform Indicator : Overview It is widely known that a price series does not follow a normal or Gaussian probability distribution. Yet in finance the normal distribution assumption is automatically made to derive price models and other theories. The objective of the Fisher Transform is to make prices around the high and low boundaries to follow a normal distribution. The Special formulation here includes a trigger line around the transform to indicate possible entry and exit position; this is particularly useful in a fast time frame trading environment. In addition, there is no need for the user to make any setting adjustments as the indicator defaults are applicable to all time frames, The indicator works well with stocks, futures, and forex instruments. 2 Copyright T-Valuation 2012

3 2) Indicator Use: General Guidelines 2.1) Bullish The Fisher transform is above zero and above the trigger line. Fisher Above Zero & Trigger Line (Green Bar) Trigger Line (Purple) 3 Copyright T-Valuation 2012

4 2.2) Bearish The fisher Transform is below zero and below the trigger line. Fisher Below Zero & Below Trigger Line (Green Bar) Trigger Line (Purple) 4 Copyright T-Valuation 2012

5 2.3) Correction in Uptrend The Fisher Transform is above zero but below the trigger line Fisher Above Zero & Below Trigger Line 5 Copyright T-Valuation 2012

6 2.4) Bear rally The Fisher Transform is below zero but above the trigger line Fisher Below Zero & Below Trigger Line 6 Copyright T-Valuation 2012

7 3) Examples 3.1) EURUSD-Forex Long on 15 Minutes Chart A Fisher Transform (Green Bar) Trigger Line (Purple) B A)Long Entry : The Fisher Transform crosses above the zero line and is above the Trigger Line. B)Exit Long : Exit long position when the Fisher trasform crosses below the Trigger Line but is still positive 7 Copyright T-Valuation 2012

8 3.2) Apple Computer Inc. (AAPL) Short on 180 Ticks Chart A B Fisher Transform (Green Bar) Trigger Line (Purple) A) Short Entry : The Fisher Transform crosses below the zero line and is below the Trigger Line. B) Cover Short : Exit short position when the Fisher trasform crosses above the Trigger Line but is still negative 8 Copyright T-Valuation 2012

9 3.3) APPLE Computer Inc.(AAPL) Long Term Position on Monthly Chart A Fisher Transform (Green Bar) Trigger Line (Purple) B A) Long Entry: The Fisher Transform crossed below the zero line in 2009 and was above the Trigger Line. B) Maintain Position: As of September 2019 the Fisher Transform is still above the Trigger Line and positive.the position is maintained. 9 Copyright T-Valuation 2012

10 3.4) Netflix Inc.(NFLX) Bust : Short on Weekly Chart A B Fisher Transform (Green Bar) Trigger Line (Purple) A) Short Entry : The Fisher Transform crosses below the zero line and is below the Trigger Line. B) Cover Short : Exit short position when the Fisher trasform crosses above the Trigger Line but is still negative. 10 Copyright T-Valuation 2012

11 4) Alerts The folowing alerts are set on by default when you install the indicator - Long Entry Alert - Long Exit Alert - Short Entry Alert - Cover Short Alert To disable these alerts go to the format menu and unckeck the Enable Alert selector in the Alerts tab. 11 Copyright T-Valuation 2012

12 4) Disclaimer All charts were created using TradeStation 9.1 We are not recommending the buying or selling of any securities shown in the examples. Trading involve risks that you should be aware of before using any strategy.we are not liable for any loses incurred by subscribers while using any of our indicatos and or strategies. You are fully reponsible for the trades made based on signals generated by this indicator. Support Contact : strategynetwork@thermovaluation.com 12 Copyright T-Valuation 2012