[blackcat] L1 Linear Regression-Adjusted EMA

2022年9月3日

Level 1

Background

Vitali Apirine proposed a new idea named "The Linear Regression-Adjusted Exponential Moving Average". Here it is the pine v4 impelementation of this idea.

Function

Linear Regression Adjusted Exponential Moving Average (LRAdj EMA) is used to combine a linear regression (linreg in tradingview) with an EMA. It can be used to define the trend reveral points while filtering price action. The LRAdj EMA can be used in combination with a traditional EMA of the same length to facilitate trend identification or it can serve as an important MA candicate in a trading system to potentially replace T3, JMA, KAMA or other MA functions.

Remarks
Feedbacks are appreciated.

4月20日

版本注释

OVERVIEW
The [blackcat] Linear Regression-Adjusted EMA indicator combines linear regression and exponential moving averages (EMAs) to provide a smoothed and adjusted view of price movements. This unique approach helps traders identify trends and potential reversal points more accurately. By plotting the adjusted EMA alongside trigger lines, users can easily spot crossover events signaling buy ('B') and sell ('S') opportunities 📈💹.

FEATURES

Combines Linear Regression and Exponential Moving Averages (EMAs) for enhanced trend identification:
Periods: Number of periods for calculating the EMA.
Pds: Periods for linear regression calculation.
Multiplier: Adjustment factor for the linear regression component.
Plots Linear Regression-Adjusted EMA line along with a Trigger Line:
Yellow line represents the adjusted EMA.
Fuchsia line acts as the trigger reference.
Fills the area between the two lines for better visualization of trend direction 🎨
Displays buy ('B') and sell ('S') labels on the chart for quick trade signals 🏷️
Generates alerts based on crossover events between the adjusted EMA and trigger line 🔔
HOW TO USE

Add the indicator to your TradingView chart by selecting it from the indicators list.
Adjust the Periods, Pds, and Multiplier parameters to suit your preferred sensitivity ⚙️.
Monitor the chart for buy and sell labels indicating potential trade opportunities.
Set up alerts based on the generated signals to receive notifications when conditions are met 📲.
Use the filled areas between the lines as additional context for market sentiment analysis.
LIMITATIONS

The indicator may generate false signals in highly volatile or ranging markets 🌪️.
Users should combine this indicator with other forms of analysis for more reliable trading decisions.
The effectiveness of the indicator may vary depending on the asset and timeframe being analyzed.
NOTES

Ensure that you have sufficient historical data available for accurate calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Customize the appearance and parameters as needed to fit your trading strategy.