Linear regression bands — Indicator by max007

Linear regression bands is constructed by using linear regression curve +/- ATR, for the lower and upper bounds respectively. One advantage of linear regression bands, compared to bollinger bands, is that this indicator is not a lagging indicator.

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.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?

// linear regression band (regression curve +/- ATR)

study(title="Linear regression band", shorttitle="LRB", overlay=true)

src = close
//Input
nlookback = input (defval = 20, minval = 1, title = "Number of Lookback")
scale = input(defval=1,  title="scale of ATR")
nATR = input(defval = 14, title="ATR Parameter")

//Linear Regression Curve
lrc = linreg(src, nlookback, 0)
lrc_u = lrc + scale*atr(nATR)
lrc_l = lrc - scale*atr(nATR)
plot(lrc, color = red, style = line, linewidth = 2)
plot(lrc_u, color = red,style = line,  linewidth = 1)
plot(lrc_l, color = red, style = line, linewidth = 1)