Hey there, fellow traders! Today, I want to dive into an interesting indicator that many have found useful in their trading toolkit: the Smoothed RSI Inverse Fisher Transform, originally introduced by Sylvain Vervoort back in the October 2010 issue of Stocks & Commodities magazine. This article even snagged the Reader's Choice award in 2011!
The magic of this indicator lies in its approach. It starts with smoothing the price curve using a “rainbow” weighted moving average. This smoothed price is then utilized to calculate the RSI, which is further refined by the Vervoort zero-lag exponential moving average. Finally, we apply an inverse Fisher filter to transform the resulting curve.
If you're interested in utilizing this indicator, there are codes available for various trading platforms. For those of you using MT4, I’ve attached my MQL4 version below.
And just a quick update from June 24, 2011: I’ve fixed the refresh issue when the Max Bars on Chart is reached. So, you can trade smoothly without any hiccups!
Happy trading, and may your charts be ever in your favor!
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