Rainbow Fisher - AYNET

The Rainbow Fisher Indicator is inspired by John Ehlers' work on the Fisher Transform, a tool designed to normalize price movements and highlight overbought and oversold conditions. This script combines Ehlers' Fisher Transform with a rainbow visualization for enhanced trend analysis.

Summary of the Code
Fisher Transform Calculation:

The indicator calculates the Fisher Transform based on normalized high-low price data (hl2), which emphasizes turning points in market trends.
Rainbow Visualization:

The Fisher line is dynamically colored using a rainbow gradient to visually represent the magnitude and direction of market movements.
Overbought/Oversold Levels:

Configurable horizontal lines mark thresholds (1.5 for overbought and -1.5 for oversold by default), helping traders identify extremes in price action.
Signal Labels:

Labels are displayed when the Fisher line crosses the overbought or oversold levels, providing clear visual cues for potential market reversals.
Acknowledgment:

This indicator is an homage to John Ehlers' groundbreaking work in digital signal processing for financial markets.
How to Use
Trend Reversal Detection:
Use the overbought and oversold levels to identify potential turning points in market trends.
Momentum Analysis:
Observe the rainbow-colored Fisher line for directional cues and the strength of price movements.
Customization
Adjust the Fisher Transform length to refine sensitivity.
Modify overbought/oversold levels to align with your trading strategy.
Enable or disable the rainbow effect for simplicity or added clarity.
Let me know if you’d like further refinements or additional features! 🌈