Dynamic Linear Regression

What you get

• A clear view of the direction and slope of the most recent bars.
• Two outer lines at a fixed distance from the regression line, as a reference for your own analysis.
• Lightweight: only the bars inside the window are calculated.
• Free, with no external files or DLLs.

How it works
On every tick the indicator fits a least-squares line to the closing prices of the last Window size bars. The central line is that fit. The top and bottom lines are the same line shifted up and down by the distances you set, in points.

Parameters (Inputs tab)
General

• Window size — number of bars used in the regression (default 20)

Top line

• Line color, Line style, Line width (default Blue, Solid, 1)
• Top line distance (points) (default 200)

Regression line

• Line color, Line style, Line width (default Red, Solid, 2)

Bottom line

• Line color, Line style, Line width (default Blue, Solid, 1)
• Bottom line distance (points) (default 200)

FAQ

• Which markets and timeframes? Any symbol and any timeframe. Set the distances in points to suit the instrument's volatility.
• Does it give trade signals? No. It draws reference lines for your own analysis.
• Does it repaint? Yes, by design: the line is recalculated on each tick over the most recent window, so its position moves with new prices.
• Does it trade? No. It is an indicator only.

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