OPEN-SOURCE SCRIPT
Linear Regression Channel (Std Error) & Trend
This indicator plots a Linear Regression Channel that dynamically adapts to price action using a rolling lookback period. It is designed to assist traders in identifying the dominant trend direction and statistical volatility extremes.
Methodology & Calculations
Center Line (Basis): Calculated using the ta.linreg function. It represents the "best-fit" straight line through the price data over the specified length, serving as a mean-reversion anchor.
Outer Bands: Constructed using Standard Deviation (ta.stdev) multiples added to and subtracted from the center line. These bands expand and contract based on market volatility.
Trend Logic: The color of the channel is determined by the slope of the Linear Regression line. A positive slope turns the channel Green (Uptrend), while a negative slope turns it Red (Downtrend).
Key Features
Trend Visualization: The background color provides an instant visual cue of the market regime.
Visual Signals (UP/DN): Small triangular labels appear when the slope polarity flips (e.g., from negative to positive), marking a potential trend change.
Dynamic Support/Resistance: The Upper and Lower bands act as dynamic levels where price is statistically overextended, often leading to mean reversion or consolidation.
Alerts Included
Trend Change (UP): Triggered when the LinReg slope turns positive.
Trend Change (DOWN): Triggered when the LinReg slope turns negative.
Price > Lower Band: Potential mean reversion (bounce) signal.
Price < Upper Band: Potential mean reversion (pullback) signal.
Settings
Length: Adjusts the lookback period for the regression calculation (Default: 100).
Multiplier: Adjusts the width of the bands based on Standard Deviation (Default: 2.0).
Disclaimer: This tool is for educational purposes and technical analysis only. Past performance does not guarantee future results. Always manage your risk.
Methodology & Calculations
Center Line (Basis): Calculated using the ta.linreg function. It represents the "best-fit" straight line through the price data over the specified length, serving as a mean-reversion anchor.
Outer Bands: Constructed using Standard Deviation (ta.stdev) multiples added to and subtracted from the center line. These bands expand and contract based on market volatility.
Trend Logic: The color of the channel is determined by the slope of the Linear Regression line. A positive slope turns the channel Green (Uptrend), while a negative slope turns it Red (Downtrend).
Key Features
Trend Visualization: The background color provides an instant visual cue of the market regime.
Visual Signals (UP/DN): Small triangular labels appear when the slope polarity flips (e.g., from negative to positive), marking a potential trend change.
Dynamic Support/Resistance: The Upper and Lower bands act as dynamic levels where price is statistically overextended, often leading to mean reversion or consolidation.
Alerts Included
Trend Change (UP): Triggered when the LinReg slope turns positive.
Trend Change (DOWN): Triggered when the LinReg slope turns negative.
Price > Lower Band: Potential mean reversion (bounce) signal.
Price < Upper Band: Potential mean reversion (pullback) signal.
Settings
Length: Adjusts the lookback period for the regression calculation (Default: 100).
Multiplier: Adjusts the width of the bands based on Standard Deviation (Default: 2.0).
Disclaimer: This tool is for educational purposes and technical analysis only. Past performance does not guarantee future results. Always manage your risk.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.