Logarithmic Regression Channel-Trend [BigBeluga]

This indicator utilizes logarithmic regression to track price trends and identify overbought and oversold conditions within a trend. It provides traders with a dynamic channel based on logarithmic regression, offering insights into trend strength and potential reversal zones.



🔵Key Features:

• Logarithmic Regression Trend Tracking: Uses log regression to model price trends and determine trend direction dynamically.
  

  f_log_regression(src, length) =>
  
      float sumX      = 0.0
      float sumY      = 0.0
      float sumXSqr   = 0.0
      float sumXY     = 0.0
  
      for i = 0 to length - 1
          val = math.log(src)
          per = i + 1.0
          sumX += per
          sumY += val
          sumXSqr += per * per
          sumXY += val * per
  
      slope = (length * sumXY - sumX * sumY) / (length * sumXSqr - sumX * sumX)
      average = sumY / length
      intercept = average - slope * sumX / length + slope
  
      [slope, intercept]

  
• Regression-Based Channel: Plots a log regression channel around the price to highlight overbought and oversold conditions.
  
• Adaptive Trend Colors: The color of the regression trend adjusts dynamically based on price movement.
  
• Trend Shift Signals: Marks trend reversals when the log regression line cross the log regression line 3 bars back.
  
• Dashboard for Key Insights: Displays:
  - The regression slope (multiplied by 100 for better scale).
  - The direction of the regression channel.
  - The trend status of the logarithmic regression band.
  

🔵Usage:

• Trend Identification: Observe the regression slope and channel direction to determine bullish or bearish trends.
  
• Overbought/Oversold Conditions: Use the channel boundaries to spot potential reversal zones when price deviates significantly.
  
• Breakout & Continuation Signals: Price breaking outside the channel may indicate strong trend continuation or exhaustion.
  
• Confirmation with Other Indicators: Combine with volume or momentum indicators to strengthen trend confirmation.
  
• Customizable Display: Users can modify the lookback period, channel width, midline visibility, and color preferences.
  

Logarithmic Regression Channel-Trend [BigBeluga] is an essential tool for traders who want a dynamic, regression-based approach to market trends while monitoring potential price extremes.