Fisher Volume Transform | AlphaNatt

Fisher Volume Transform | AlphaNatt

A powerful oscillator that applies the Fisher Transform - converting price into a Gaussian normal distribution - while incorporating volume weighting to identify high-probability reversal points with institutional participation.

"The Fisher Transform reveals what statistics professors have known for decades: when you transform market data into a normal distribution, turning points become crystal clear."

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

🎲 THE MATHEMATICS

Fisher Transform Formula:
The Fisher Transform converts any bounded dataset into a Gaussian distribution:

y = 0.5 × ln((1 + x) / (1 - x))

Where x is normalized price (-1 to 1 range)

Why This Matters:

• Market extremes become statistically identifiable
  
• Turning points are amplified and clarified
  
• Removes the skew from price distributions
  
• Creates nearly instantaneous signals at reversals
  

Volume Integration:
Unlike standard Fisher Transform, this version weights price by relative volume:

• High volume moves get more weight
  
• Low volume moves get filtered out
  
• Identifies institutional participation
  
• Reduces false signals from retail chop
  

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

💎 KEY ADVANTAGES

• Statistical Edge: Transforms price into normal distribution where extremes are mathematically defined
  
• Volume Confirmation: Only signals with volume support
  
• Early Reversal Detection: Fisher Transform amplifies turning points
  
• Clean Signals: Gaussian distribution reduces noise
  
• No Lag: Mathematical transformation, not averaging
  

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

⚙️ SETTINGS OPTIMIZATION

Fisher Period (5-30):

• 5-9: Very sensitive, many signals
  
• 10: Default - balanced sensitivity
  
• 15-20: Moderate smoothing
  
• 25-30: Major reversals only
  

Volume Weight (0.1-1.0):

• 0.1-0.3: Minimal volume influence
  
• 0.5-0.7: Balanced price/volume
  
• 0.7: Default - strong volume weight
  
• 0.8-1.0: Volume dominant
  

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

📊 TRADING SIGNALS

Primary Signals:

• Zero Cross Up: Bullish momentum shift
  
• Zero Cross Down: Bearish momentum shift
  
• Signal Line Cross: Early reversal warning
  
• Extreme Readings (±75): Potential reversal zones
  

Visual Interpretation:

• Cyan zones: Bullish momentum
  
• Magenta zones: Bearish momentum
  
• Gradient intensity: Strength of move
  
• Histogram: Raw momentum power
  

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

🎯 OPTIMAL USAGE

Best Market Conditions:

• Range-bound markets (reversals clear)
  
• High volume periods
  
• Major support/resistance levels
  
• Divergence hunting
  

Trading Strategies:

1. Extreme Reversal:
Enter when oscillator exceeds ±75 and reverses

2. Zero Line Momentum:
Trade crosses of zero line with volume confirmation

3. Signal Line Strategy:
Early entry on signal line crosses

4. Divergence Trading:
Price makes new high/low but Fisher doesn't

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

Developed by AlphaNatt | Quantitative Trading Systems

Version: 1.0
Classification: Statistical Transform Oscillator
Not financial advice. Always DYOR.