Fisher Transform of On Balance Volume (by ChartArt) — Indicator by ChartArt

A simple mash-up of the On Balance Volume (OBV) indicator with the Fisher Transform indicator (blue) with the classic Fisher Transform signal trigger (silver color), plus a linear regression as a second signal line (red).

I recommend to use a period for the linear regression which has the same speed or is slower than the period of the Fisher Transform to avoid overshooting.

P.S. Here are three areas where the indicator worked quite good on historic charts

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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Want to use this script on a chart?

study(title="Fisher Transform of On Balance Volume", shorttitle="CA_-_Fisher_of_OBV")

// version 1.0
// idea by ChartArt on April 8, 2015
// using TradingView indicators 'Fisher Transform' and 'On Balance Volume'
// (this indicator only works with symbols where volume data is available)
// list of my work: 
// https://www.tradingview.com/u/ChartArt/

//On Balance Volume
src = close
obv = cum(change(src) > 0 ? volume : change(src) < 0 ? -volume : 0*volume)

//Fisher Transform of OBV
len = input(12, minval=2, title="Period of Fisher Transform of OBV")
high_ = highest(obv, len)
low_ = lowest(obv, len)
round_(val) => val > .99 ? .999 : val < -.99 ? -.999 : val
value = round_(.66 * ((obv - low_) / max(high_ - low_, .001) - .5) + .67 * nz(value[1]))
fish1 = .5 * log((1 + value) / max(1 - value, .001)) + .5 * nz(fish1[1])
signallen = input(12, title="Linear Regression Signal Line Period")
signal = linreg(fish1,signallen,0)

fish2 = fish1[1]
plot(fish2, color=silver, title="Fast Signal Line")
plot(fish1, color=blue, title="Fisher Transform of OBV")
plot(signal,color=red, title="Linear Regression Signal Line")
hline(0, color=maroon)