This indicator is a modified version of the Fisher Transform designed for cTrader. It converts price data into a normalized oscillator that highlights potential turning points in the market.
It calculates a smoothed Fisher Transform based on the midpoint price (average of high and low) over a configurable period. The transformation emphasizes extreme price movements, making tops and bottoms easier to identify.
To reduce noise, the raw Fisher values are further smoothed using two moving averages with configurable periods and types. The indicator also separates positive and negative Fisher values into two differently colored plots (green and red), improving visual clarity around the zero line.
Additionally, a signal line (yellow) is plotted using the second moving average, helping traders identify trend direction and momentum shifts more clearly.
Overall, this indicator is used to detect reversals, highlight overbought/oversold conditions, and provide smoother trend confirmation through layered averaging.
