# [RS]Decay Channel Candles V0

895 9
EXPERIMENTAL: Experiment using Linear Regression based on %atr for decay(decay option is a mutiplier for the atr).
```study("[RS]Decay Channel Candles V0", overlay=true)
linreg_length = input(type=integer, defval=4)
atr_length = input(type=integer, defval=100)
decay = atr(atr_length)*input(type=float, defval=0.125)
prev_top = nz(top[1], high)-decay
prev_bot = nz(bot[1], low)+decay
abs_top = valuewhen(high >= prev_top, high, 0)
abs_bot = valuewhen(low <= prev_bot, low, 0)
top = high >= prev_top ? high : prev_top
bot = low <= prev_bot ? low : prev_bot
top_close = max(high, min(top, linreg(avg(top, high), linreg_length, 0)))
bot_close = min(low, max(bot, linreg(avg(bot, low), linreg_length, 0)))
//#9ce0b2//#e0b29c
top_palete = rising(abs(top-top_close),1)?orange:#e0b29c
bot_palete = rising(abs(bot-bot_close),1)?olive:#9ce0b2
plotbar(top,top,top,top_close, color=top_palete)
plotbar(bot,bot,bot,bot_close, color=bot_palete)
plot(abs_top, color=abs_top==abs_top[1]?maroon:na)
plot(abs_bot, color=abs_bot==abs_bot[1]?green:na)

```
Thanks for sharing,
I have quick question: how to draw lines ?

Draw_line(price1, candle1, price2, candle2)

how to achieve this function ?
ibraheemhsn
@ibraheemhsn, try this:

or this:

RicardoSantos
@RicardoSantos, Thank you a lot
Good indicator, for an Options trader. How and when to manage positions. Etc. Good job. Keep it flowing.......
it uses linear regression to map breakouts, on tight ranges you would need to accommodate the volume of decay manually to adjust to the tighter volatility(usually on accumulation zones but not limited as high volume volatility can result on the same effect), for clarification this is a lagging indicator and its purpose should be to give a better understanding of the underlying movement.
RicardoSantos
thats great thank you Ricardo now let me dig deeper appreciate chart and explanation
Hey Richardo can you give an explanation and your thought process for fuller understanding ..thank you
Hi Ricardo, could you elaborate on how to read the indicator? Thanks
Sweet!
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter