Binary Fisher [Orderflowing]

Nov 19, 2023

Binary Fisher | Adaptive Fisher Transform | Adaptive Bands | Smoothing (+) | Customizable (+)
Built using Pine Script V5.

Introduction
The Binary Fisher is a tool that transforms your traditional market analysis.
This indicator is for traders seeking a dynamic and responsive view of market turning points.

Innovation and Inspiration
Drawing inspiration from John Ehlers, the Binary Fisher represents a step forward.
It redefines the Fisher Transform with more features and customization, which gives traders a unique lens for analysis.

Core Features

• Adaptive Length Calculation: Binary Fisher can operate in both fixed and automatic length modes.
  
• Smoothing Options: Choose from EMA, HMA, SMA, Fourier, or no smoothing for the Fisher values, the indicator bends to your analytical preference.
  
• Adaptive Bands: Visualize market extremes with adaptive bands, smoothed using EMA, HMA, SMA, or Fourier methods.
  
• Trend Shift Detection: The indicator identifies bullish, bearish, and neutral shifts in market trends, providing early signals for potential reversals.
  
• Experimental Divergence Analysis: Detect divergences between price and Fisher values, a key indicator of potential trend changes.
  
• Band Lines: Projects band lines around the Fisher values, offering a way to analyze the interaction between the Fisher line and these bands to project the trend of the fisher transform.
  

Functionality

• Input Source: Choose from various price data inputs like close, open, high, low, and more for Fisher calculations.
  
• Hilbert Transform for Dominant Cycle Period: Utilizes Hilbert Transform to dynamically adjust to the dominant market cycle.
  
• Custom Thresholds and Bands: Set your thresholds for trend shifts and adjust band multipliers for personalized sensitivity.
  
• Visualization: The indicator has a color system for easy understanding of the trend according to the fisher transform.
  
• Multi-Timeframe: Apply the Binary Fisher across different timeframes, and chart them from another. Great for different timeframe strategies.
  

Example of Band Lines:

Example of Multi-Timeframe (1D Calculation / 4H Chart):


Analysis and Interpretation
The Binary Fisher helps the trader get a simpler view of market pivots.
The flexibility allows for better identification of overbought and oversold conditions, trend shifts, and potential reversal points.
The color system and visual markers make it easy to interpret quickly.

Usage and Applications

• Instrument Trend Analysis: Understand the direction and strength of market trends.
  
• Reversal Prediction: Identify potential reversal points with trend shift dots and divergence detection.
  
• Trading Strategy: Adapt the indicator settings to align with your unique trading style and risk tolerance.
  

Conclusion
The Binary Fisher indicator stands out as innovative trading technology.
It is a powerful tool for traders born by enhancing the Fisher Transform with adaptive features and modern analysis methods, with lots of customization options.

The Binary Fisher should be used as part of a larger trading strategy.
Never make trading decisions based on the signals of the Binary Fisher alone.

Feb 25

Release Notes

V1.1

Updated Input Section with tooltips.

New Volatility Prediction feature with Custom GARCH, SV, and NoVaS methods for predicting volatility with the fisher transform.

Updated Fisher Settings

Updated Adaptive Bands functionality

Upgraded trend shift detection

Updated Color Settings for trend shift dots and divergence

New & Better divergence detection logic with Pivot Lookback Settings

Streamlined Code

Volatility Examples: