Exponential Transformation (EXP)

This study raises e, about 2.718, to the power of the source on every bar: y = e^x. It has no lookback and no state, so each bar's value depends only on that bar's source.

The transform turns a series measured on an additive scale into one on a multiplicative scale. It undoes a natural logarithm, so a log price becomes a price again and a log return becomes a growth factor, where 0 maps to 1, 0.1 to about 1.105 and -0.1 to about 0.905.

The result grows very fast. Above a source value of about 709 it is too large to represent, and those bars are left empty rather than drawn as an infinite value. On a price above about 709 the line is empty, and on a lower price the values it does draw are astronomically large, so the transform is only useful on a source that is already close to zero.

Read the line as the source re-expressed as a multiplier: a value of 1 means the source was 0, above 1 means it was positive and below 1 means it was negative, never reaching zero. Equal steps in the source become equal percentage steps in the output, so large positive readings are stretched and negative ones compressed.

Applied to an ordinary price the study shows nothing useful: e to the power of a price above about 709 overflows and leaves the bar empty, and a lower price gives an astronomically large number. It is meant for a source scaled near zero, such as a log return, a z-score or another oscillator centred on zero.