Volatility Linear Regression Gaussian | Lyro RS

Volatility Linear Regression Gaussian | Lyro RS


Overview
This indicator integrates linear regression analysis, Gaussian filtering, volatility measures, and regime detection into a single momentum and trend framework. Its purpose is to provide traders with a structured perspective on market state by combining smoothed regression signals with volatility envelopes and adaptive visualizations. Through these elements, it offers insights into whether markets are trending, consolidating, overextended, or reverting.

The indicator begins by applying a Gaussian filter to the chosen source, smoothing price data while preserving structural characteristics. Around this smoothed signal, volatility measures are introduced using ATR and standard deviation calculations, forming adaptive envelopes that define overbought and oversold conditions. A linear regression of filtered momentum values is then produced, with optional smoothing via multiple moving average types. This core regression signal becomes the basis for trend, strength, and reversal assessments. Users can toggle between Classic or Heikin Ashi display modes, with each mode providing a different representation of regression-driven momentum dynamics.



Originality
In terms of originality, this script distinguishes itself by unifying several advanced concepts into one modular framework. Gaussian smoothing of the regression base adds flexibility beyond standard linear regression models, while volatility-adjusted ATR bands and dynamic standard deviation envelopes frame regression values within a probabilistic context. The addition of a regime detector further expands utility by classifying the environment as trending or mean-reverting. Combined with Heikin Ashi transformations, multi-mode operation, customizable visualization, and integrated tables, this design enables a single indicator to adapt across multiple strategies, from directional bias to mean reversion and reversal identification.


Key Features

• Linear regression inputs allow traders to choose the price source, regression length, smoothing method, and smoothing length, defining the sensitivity of the regression calculation.
  
  
• Gaussian settings provide control over length and sigma, letting users adjust the degree of smoothing applied to the base signal.
  
  
• Volatility settings define ATR length and factor as well as standard deviation length, tuning the responsiveness of volatility envelopes.
  
  
• The regime detector offers long- or short-term modes, background coloring, and transparency adjustments for identifying structural market states.
  
  
• Standard deviation band settings control whether a zero-line or dynamic midline is used, along with band length and multiplier for overbought/oversold thresholds.
  
  
• Display options include Classic or Heikin Ashi modes, along with operational modes for Trend, Strength, or Reversals. Color schemes can be selected from predefined palettes or fully customized.
  
  
• Table settings allow enabling or disabling the summary table, setting its position, forcing overlay if necessary, and choosing from multiple size options.
  

Visualization
The visualization combines dynamic candles, regression curves, standard deviation bands with shaded fills, and optional background colors tied to regime detection. A summary table displays active module states, showing the condition of trend, strength, reversals, and regime at a glance. Alerts are provided for all key conditions across both Classic and Heikin Ashi modes, including directional trend shifts, strength changes, reversal states, and regime classification.

Summary
In summary, the Volatility Linear Regression Gaussian indicator is a versatile analytical framework built from regression, Gaussian smoothing, volatility envelopes, and regime detection. Its design emphasizes adaptability by offering multiple operational modes, display variations, and alert conditions. By consolidating advanced methods into one unified tool, it supports different analytical approaches within a consistent and customizable structure.

⚠️Disclaimer
This indicator is a tool for technical analysis and does not provide guaranteed results. It should be used in conjunction with other analysis methods and proper risk management practices. The creators of this indicator are not responsible for any financial decisions made based on its signals.