Linear regression bands
Linear regression bands is constructed by using linear regression curve +/- ATR, for the lower and upper bounds respectively. One advantage of linear regression bands, compared to bollinger bands, is that this indicator is not a lagging indicator.
// linear regression band (regression curve +/- ATR) study(title="Linear regression band", shorttitle="LRB", overlay=true) src = close //Input nlookback = input (defval = 20, minval = 1, title = "Number of Lookback") scale = input(defval=1, title="scale of ATR") nATR = input(defval = 14, title="ATR Parameter") //Linear Regression Curve lrc = linreg(src, nlookback, 0) lrc_u = lrc + scale*atr(nATR) lrc_l = lrc - scale*atr(nATR) plot(lrc, color = red, style = line, linewidth = 2) plot(lrc_u, color = red,style = line, linewidth = 1) plot(lrc_l, color = red, style = line, linewidth = 1)