DonovanWall

Regression Channel [DW]

This is an experimental study which calculates a linear regression channel over a specified period or interval using custom moving average types for its calculations.

Linear regression is a linear approach to modeling the relationship between a dependent variable and one or more independent variables.
In linear regression , the relationships are modeled using linear predictor functions whose unknown model parameters are estimated from the data.

The regression channel in this study is modeled using the least squares approach with four base average types to choose from:
-> Arnaud Legoux Moving Average ( ALMA )
-> Exponential Moving Average ( EMA )
-> Simple Moving Average ( SMA )
-> Volume Weighted Moving Average ( VWMA )
When using VWMA , if no volume is present, the calculation will automatically switch to tick volume , making it compatible with any cryptocurrency, stock, currency pair, or index you want to analyze.

There are two window types for calculation in this script as well:
-> Continuous, which generates a regression model over a fixed number of bars continuously.
-> Interval, which generates a regression model that only moves its starting point when a new interval starts. The number of bars for calculation cumulatively increases until the end of the interval.

The channel is generated by calculating standard deviation multiplied by the channel width coefficient, adding it to and subtracting it from the regression line, then dividing it into quartiles.

To observe the path of the regression, I've included a tracer line, which follows the current point of the regression line. This is also referred to as a Least Squares Moving Average ( LSMA ).

For added predictive capability, there is an option to extend the channel lines into the future.

A custom bar color scheme based on channel direction and price proximity to the current regression value is included.

I don't necessarily recommend using this tool as a standalone, but rather as a supplement to your analysis systems.
Regression analysis is far from an exact science. However, with the right combination of tools and strategies in place, it can greatly enhance your analysis and trading.
Notas de Lançamento: Updates:
-> Script structure has been reorganized.
-> Corrected NaN filter values in initial states.
-> Added Rolling Moving Average and Linear Weighted Moving Average to the list of available base averages.
-> Added style customization for the channel lines. Because TV doesn't have built-in style inputs for line objects, you'll find these settings in the "Inputs" section. For each channel line, you can now adjust:
- If the line is drawn - selected via the specified toggle switch
- Width of the line - can be any integer greater than zero
- Style of the line - available styles are solid, dotted, and dashed
- Color of the line - uses my RGB color editor, which has 216 colors to choose from via the specified R, G, and B inputs
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Quer usar esse script no gráfico?
For my full list of premium tools, check the blog:
https://wallanalytics.com/

Reach out on Telegram:
https://t.me/DonovanWall

Comentários

What three parameters we are expecting here?

//Correlation Coefficient
corr(x, y, t)=>

Close, length and something else?

Thanks.
+4 Resposta
DonovanWall syracusepro
@syracusepro, Great question. x is the bar number counting upward, y is the price value, and t is the sampling length. The slope parameter b is dependent on correlation between price and time.
+1 Resposta
syracusepro DonovanWall
@DonovanWall, Thanks a lot.
+1 Resposta
😍
+3 Resposta
HARİKA 👍
+2 Resposta
✔️
+2 Resposta
Good to have you have :)
+2 Resposta
Thank you for the new script once again. I'm a big fan!
+1 Resposta
Thank you for publishing this, i'd like to adjust to show half deviation lines and full deviation lines - would you be able to point me to the line of code to try adjusting? Regards S
Resposta
Início Rastreador de Fundamentos Rastreador Forex Rastreador de Criptomoedas Calendário Econômico Como Funciona Recursos gráficos Preços Indique um Amigo Regras da Casa Central de Ajuda Soluções para Sites & Corretoras Widgets Soluções em Gráficos Biblioteca de Gráficos Lightweight Blog & Notícias Twitter
Perfil Configurações de perfil Conta e Cobrança Amigos indicados Moedas Meus Tíquetes de Suporte Central de Ajuda Mensagens Privadas Conversa Deslogar