alexgrover

Linear Channels

Introduction

I already made an indicator (simple line) that tried to make lines on price such that the results would not repaint and give a good fit to the price, today i publish a channels indicator based on the simple line indicator. The indicator aim to show possible support and resistance levels when the central line posses a low sum of squares with the price, a linear extrapolation was also provided in order to show possible future price positions respective to the channels.

The Indicator

The emphasis parameter of the simple line indicator has been removed, instead we keep length and mult as numerical input parameters. In general length control how persistent the lines are, larger values will create longer lines on average, mult help make the line fit to the price better but might as well affect how spread the channels are as well as the lines average length. When mult > length the lines will fit better the price while when length >= mult the fit might not be the best.

The point parameter allow you to fix the indicator when using it on high market price values or when the indicator exhibit a weird behaviour.


point = false on btcusd


point = true

If the lines still does not fit well enough try to lower length.


I know this might result inconvenient in so many ways but i'am working on simplifying things. Therefore some larger price values might use lower length and use mult instead. For market not using the point parameters a settings of : length > 1 and mult = length*2 might provide a good to go setup.



The channel spreading parameter allow to make spread the channels by a certain factor.

Issues


I'am still not good with line extensions, if it bother you deactivate the extrapolation parameter. Sorry for the inconvenience.

Conclusion

It is possible to make non repainting linear indicators, and i'am working on some of them. While some might argue that price is not linear thus not requiring the use of linear indicators it can still be interesting to use those if they, unlike the linear regression , don't repaints and provide a way to change their directions according to the price trend.

Thanks for reading !
Release Notes: Update Log

An issue regarding the linear extrapolation showing up several lines during line direction change should be fixed
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Patreon: https://www.patreon.com/alexgrover

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You can also check out some of the indicators I made for luxalgo : https://www.tradingview.com/u/LuxAlgo/#published-scripts

Comments

Agile thinking and talented. You are the most valuable asset of the TV community. Benefit, grateful.
+2 Reply
Hey Alexgrover you're one of my favourite mentor in TV. Very appreciated your effort and generous keep building and sharing.
Thanks again you posting a lot of screen shots for us; and great explanation
Thank you very much =D
+2 Reply
@ICEKI, Glad i can help, will post something similar later in the week :)
Reply
you rock my man!
+1 Reply
alexgrover wroclai
@wroclai, You too ! Thx for always supporting my scripts
Reply
barcolor(a > a ? color.green : a < a ? color.red : na)

Little design improvement for a better visualization
+1 Reply
Exceptional code style - sharp and concise. As always, plentiful of ideas ))
+1 Reply
capissimo capissimo
As an improvement, add these lines after 'line C = ...'

line.delete(A)
line.delete(B)
line.delete(C)
+1 Reply
capissimo capissimo
Sorry, these lines... ))
line.delete(A)
line.delete(B)
line.delete(C)
+1 Reply
capissimo capissimo
@capissimo, strangely enough, the commenting subsystem recodes A_, B_, C_ to just A, B, C.
Hey, moderators, what's the... ))
+1 Reply
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