Predictive Analysis Engine — Adaptive MACD Forecasting with R² S

Professional and Rule-Compliant Description (Ready for Publishing)

This description explains every component of the script in detail, highlights its originality, and provides traders with clear usage instructions — exactly what TradingView expects.

Predictive Analysis Engine (PAE)

This script is a predictive analysis model that combines trend filtering, linear forecasting, stability analysis (R²), and outlier filtering using ATR to produce an advanced, leading-style version of MACD rather than a traditional lagging one.

The indicator does not rely on random elements; it is built on four core components that work together:

1. Stability Measurement Using R²

The coefficient of determination (R²) is calculated based on the correlation between price and time, then normalized to a 0–1 scale.
A higher R² indicates more stable price movement, allowing the script to increase forecast accuracy.

Here, R² acts as a primary component of the Confidence Filter.

2. Forecasted Price Using Linear Regression

Instead of relying solely on the current price, the script uses:

Linear Regression

Weighted blending between the forecasted price and actual price

This enables the script to build a Leading MACD based on an “advanced” price that anticipates probable movement.

3. Advanced MACD With Adaptive Smoothing

MACD is applied to the blended (real + forecasted) price using:

Fast EMA

Slow EMA

MACD base

Optional TEMA for reducing signal lag

Adjustable histogram smoothing

This process makes MACD more responsive with significantly less lag, reacting faster to predicted movements.

4. Predictive MACD (Projected MACD)

Linear Regression is applied again — but this time to:

MACD

Signal

Histogram

to generate projected versions of each line (proj_macd, proj_signal), while proj_hist is used to produce early signals before the actual crossover occurs.

5. Volatility Filtering Using ATR & Volatility Ratio

ATR is used to evaluate:

Strength of movement

Overextension levels

Signal quality

ATR is combined with R² to compute:

Confidence = R² × Volatility Ratio

This suppresses weak signals and boosts high-quality, reliable ones.

6. Predictive Signals + Safety Filters

A signal is triggered when:

proj_hist crosses the 0 level

Confidence exceeds the required threshold

The real histogram is not excessively stretched (extra safety)

The script includes:

BUY / SELL

BUY_STRONG / SELL_STRONG

based on the smoothed histogram trend.

7. Coloring, Background & Visual Enhancements

The script colors:

The histogram

Chart background

Signal lines

to clearly highlight momentum direction and confidence conditions.

8. Built-In Alerts

The script provides ready-to-use alerts:

*BUY Alert

*SELL Alert

Both based on the predictive MACD model.

How to Use the Script

Add it to any timeframe and any market.

BUY/SELL signals are generated from the projected histogram crossover.

Higher Confidence = stronger signal.

Background colors help visualize trend transitions instantly.

Recommended to combine with support/resistance or price action.

Indicator Objective

This script is designed to deliver early insight into momentum shifts using a blend of:

*Linear forecasting

*Trend stability via R²

*Signal quality filtering via ATR

*A fast and adaptive advanced MACD