Must this only be used on LOG charts or any charts?
sheganinans
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@GarethSA, Over long time periods, this indicator definitely works best on the log chart. But on shorter time scales it seems to work without it. Give it a try and tell me what you think!
GarethSA
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1. Can you explain how to use this?
2. How does the settings work?
I plan on recording a video soon talking about this indicator, otherwise:
1: So the idea is that straight lines in log-space form exponential curves.
This property of the log chart is useful for examining assets with exponential growth (like high-growth stocks, cryptos, etc).
Because the log scale asymptotically approaches the absolute scale as y slice decreases, this indicator is really applicable to any time scale.
This indicator samples a distribution of lines from the past and projects them into the future, these projected lines form indicators of prior support.
The idea is longer support at those specific lines is indicative of support strength, which this indicator approximately captures.
My initial goal was to capture this intuition about exponential growth in log spaces by applying a monte-carlo style sampling approach to visualize the latent support lines.
Which is why the demo of the script is using the daily chart of BTC using the log chart.
After I had captured that in a slightly more complex version of this indicator, my goal was to distill the concept into the simplest possible implementation.
Which is why the total working code is only 3 lines long.
2: The single setting `n` just increases the look-back distance of the indicator.