FX Fisher

FX Fisher indicator is a momentum based VertexFX client side VTL indicator that is useful in providing market tops and bottoms with minimal lag. It is an oscillator and hence it scales the values between -2.57 and +2.57. It is useful over four hours period and daily period charts.

At first step, we calculate the Highest High and Lowest Low over the PERIOD bars. We then calculate the ratio of the difference between the current reference price (PRICE_FIELD) and Lowest Low, over the difference between the Highest High and Lowest Low. This ratio is normalized over two bars, and the log-normal ratio of this value and of the previous value is added up to calculate the FX Fish indicator value.

The concept behind FX Fisher indicator is that in trending markets, the Highs and Lows move in unison. In uptrends, the markets make higher highs and higher lows. The range also increases gradually. As the end of the trend approaches, the range narrows down as the market moves sideways. Our indicator captures this behavior and presents it in the curve. When the indicator moves upwards, it signals an uptrend, and a downward move of the indicator signals a downtrend. The use of log-normal smoothes the indicator value, and also attempts to reduce the lag. Likewise, in sideways and undecided markets since Higher Highs / Higher Lows are not made, neither the Lower Lows / Lower Highs, the indicator saturates around the zero levels.

BUY – Place Buy position when indicator value has bottomed out below zero, and is rising for at least two bars.
SELL – Place Sell position when indicator value has topped out above zero, and is falling for at least two bars.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Files
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.