OPEN-SOURCE SCRIPT
Updated Fractal Regression Bands [DW]
This study is an experimental regression curve built around fractal and ATR calculations.
First, Williams Fractals are calculated, and used as anchoring points.
Next, high anchor points are connected to negative sloping lines, and low anchor points to positive sloping lines. The slope is a specified percentage of the current ATR over the sampling period.
The median between the positive and negative sloping lines is then calculated, then the best fit line (linear regression) of the median is calculated to generate the basis line.
Lastly, a Golden Mean ATR is taken of price over the sampling period and multiplied by 1/2, 1, 2, and 3. The results are added and subtracted from the basis line to generate the bands.
Williams Fractals are included in the plots. The color scheme indicated whether each fractal is engulfing or non-engulfing.
Custom bar color scheme is included.
First, Williams Fractals are calculated, and used as anchoring points.
Next, high anchor points are connected to negative sloping lines, and low anchor points to positive sloping lines. The slope is a specified percentage of the current ATR over the sampling period.
The median between the positive and negative sloping lines is then calculated, then the best fit line (linear regression) of the median is calculated to generate the basis line.
Lastly, a Golden Mean ATR is taken of price over the sampling period and multiplied by 1/2, 1, 2, and 3. The results are added and subtracted from the basis line to generate the bands.
Williams Fractals are included in the plots. The color scheme indicated whether each fractal is engulfing or non-engulfing.
Custom bar color scheme is included.
Release Notes
Updates:Due to inefficiencies and its arbitrary nature, the slope factor calculation has been removed from the script.
Due to the linear regression's significant amount of overshoot, especially at greater sampling lengths, the basis line is now calculated using exponential smoothing, which fits the price series much better with minimal overshoot.
Changed the size of the fractal signals.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
For my full list of premium tools, check the blog:
wallanalytics.com/
Reach out on Telegram:
t.me/DonovanWall
wallanalytics.com/
Reach out on Telegram:
t.me/DonovanWall
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
For my full list of premium tools, check the blog:
wallanalytics.com/
Reach out on Telegram:
t.me/DonovanWall
wallanalytics.com/
Reach out on Telegram:
t.me/DonovanWall
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.