The Fourier Series Indicator performs the Fourier transform on the price data based on the first three harmonics extracted by the Bandpass Filter. The output data is a waveshape plot synthesized from the extracted harmonics. The recreated waveshape can help identify price cycles.
In addition to the primary waveshape plot, the Fourier Series Indicator calculates its rate of change. When the rate of change crosses the zero level, the wave could be taking a turn signifying a possible trend reversal.
||The amount of bars in the primary cyclic component in the data.|
||The tolerance of the measurement of the cycle period.|
||The Fourier series-synthesized waveshape.|
||The waveshape's rate of change.|
||The zero level.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.