LinReg Wave | Lyro RS

Overview
This indicator is a analytical tool designed to translate momentum, trend pressure, and market balance into a structured visual framework. It operates as a non-price oscillator combined with optional price overlays, allowing traders to evaluate trend direction, continuation strength, and valuation extremes within a single system. The indicator is built to adapt across market conditions by offering multiple operational modes, each focusing on a different market behavior while sharing a unified internal state model.



Originality
The originality of this indicator lies in how it blends regression-based momentum behavior with adaptive volatility envelopes and state-driven visualization. Instead of relying on a single traditional oscillator or trend filter, it constructs a dynamic internal wave that reacts to both directional persistence and expansion or contraction in market activity. The script does not simply label trends or overbought/oversold zones; it continuously re-contextualizes price behavior relative to its own evolving statistical environment. This makes it distinct from common momentum oscillators, static band tools, or single-purpose trend indicators.

Modes
The indicator operates through distinct modes, each designed for a specific analytical purpose:

• Cloud mode
  Signals are generated when price interacts with adaptive upper and lower regions derived from internal trend and volatility states, emphasizing directional continuation and structural shifts.
  
  
• HA Trend mode
  Signals are derived from directional consistency and candle behavior of the internal wave representation, focusing on trend stability rather than breakouts.
  
  
• Valuation mode
  Signals are produced when the internal wave reaches statistically stretched regions, highlighting potential exhaustion, imbalance, or mean-reversion zones.
  

Methodology
At its core, the script constructs an internal wave that represents normalized directional pressure rather than raw price movement. This wave is then evaluated through multiple adaptive layers to extract trend, strength, and valuation information without exposing the underlying calculations directly.

The framework can be understood through the following conceptual components:

• A composite momentum structure that blends directional persistence with rate-of-change behavior to form a normalized internal wave.
  
• A regression-based trend assessment that evaluates both direction and slope stability rather than simple crossover logic.
  
• Adaptive deviation zones that expand and contract with changing market conditions, used to contextualize extremes instead of fixed thresholds.
  
• A dynamic mid-reference that acts as a balance point for determining bullish versus bearish dominance.
  
• A volatility-aware overlay mechanism that maps internal states back onto price for visual confirmation and execution context.
  

Traders use the indicator by selecting a mode aligned with their objective, such as trend participation, continuation management, or valuation-based decision-making. The visuals, color states, and optional labels are designed to reflect internal state changes rather than individual signals in isolation, encouraging contextual interpretation instead of reactive trading.

The methodology works because it evaluates price behavior relative to its own evolving statistical structure, rather than comparing price to static or externally fixed levels.

Summary
The LinReg Wave provides a multi-layered view of market behavior by combining normalized momentum, adaptive trend assessment, and volatility-aware context into a unified system. Through its distinct modes, traders can analyze continuation, trend health, and valuation extremes without switching tools. The script is designed to guide interpretation through internal state alignment rather than exposing raw calculations, making it suitable for discretionary and systematic workflows alike.

⚠️Disclaimer
This indicator is a technical analysis tool and does not guarantee results. It should be used in conjunction with additional analysis methods and proper risk management strategies. The creators of this indicator are not responsible for any financial decisions made based on its signals.