The is a variation of R. A. Fisher's Z transformation.
In this study, there are five oscillator types to choose from:
-Fisher Transform Indicator - A conversion of price's probability distribution to a Gaussian normal distribution with a smoother output
-Inverse Fisher - Converts the RSI's distribution to a bounded distribution between 1 and -1 with a smoother output
-Inverse Fisher Oscillator - Converts the Stochastic's distribution to a bounded distribution between 1 and -1 with a smoother output
-Inverse Fisher - Converts the CCI's distribution to a bounded distribution between 1 and -1 with a smoother output
-Inverse Fisher Blast Off Momentum - Converts the BOM's distribution to a bounded distribution between 1 and -1 with a smoother output
The study uses a modified set of applied to the chosen oscillator to determine trend and impulse activity, which are highlighted by the color scheme.
Custom bar colors are included.
Cleaned up the script. Removed clutter.
Removed Inverse Fisher BOM from the oscillator types due to an excessive amount of false readings.
Thresholds are no longer Bollinger Bands. Instead, they are calculated using a cumulative average of the oscillator's deviation from 0.
Minor aesthetic changes.
-> Reorganized script structure.
-> Main calculations are now expressed as functions.
-> Added custom threshold inputs.
-> Added an option to compress the oscillator around thresholds by a specified level of intensity. (Most useful with Fisher Transform oscillator type.)
-> Revamped color scheme.
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.