Inverse Fisher RSI

Plain RSI spends most of its time somewhere between 30 and 70, and that wide middle is genuinely hard to act on - it is neither clearly overbought nor clearly oversold, just ambiguous. This indicator takes the standard RSI, smooths it lightly with a short weighted moving average, then runs the result through the inverse Fisher transform: a function that is close to linear near zero but compresses sharply toward +1 and -1 as the input grows. The practical effect is that the flat middle of RSI becomes a flat, genuinely ignorable middle in the output, while genuine extremes snap toward a decisive +1 or -1 rather than a soft 70 or 30. The transform itself is not a black box: normalise the smoothed RSI from its 0-100 range onto roughly -5 to 5, then compute (exp(2x)-1)/(exp(2x)+1) - algebraically the same as a hyperbolic tangent, written out explicitly here so it matches the published inverse Fisher transform line for line. No smoothing lag is added beyond the short weighted average already applied to RSI itself before the transform - the transform is a pointwise reshaping of each RSI value, not a rolling calculation with its own delay. This does not predict anything RSI itself did not already contain - it relabels the same information so that "near an extreme" and "in the middle" are visually and numerically distinct instead of a matter of where you personally draw the 30/70 lines. Notes and limitations - This is a transform of RSI, not an independent signal - it will agree with RSI's own reading by construction, just presented with a sharper contrast between "extreme" and "not extreme". - Like any RSI-based tool, it does not know about the broader trend; a reading pinned at +0.9 in a strong uptrend can stay pinned there for a long stretch rather than reverting. - Does not repaint - each bar's value only depends on already-closed RSI inputs at or before that bar.

Indicator · MT5 · v1.0 · Free

Tags: RSI · Moving Average · MT5 Indicator · MQL5 Source Code

MetaTrader 4 & 5 indicators · PolyMaria