B3 AutoDraw Linear Regression Channel

Using the same method many of our other scripts use, the highest highs and lowest lows are located. Then, this script automatically draws Linear Regression Channels from a selection of these located points. The bands are actual deviation bands and do not use standard deviation. It gives you an adjustable area to call price at an extreme, and it is based on actual price action.

The input structure is very simple. One input called “Sensitivity” controls the B3HHLL algorithm. The more sensitive the input (0-100), the tighter the selection of starting points for the channels that are found. Most charts can be left at the default 50, and multiple instances of the script with different inputs can help call out multiple dynamically created LRC’s. You can select up to the last 7 HHLL points to start the drawing of the LRC, but note the script only draws one LRC at a time. The rest of the inputs are cosmetic in nature.

Why is this algorithm and script a great tool?

• It works on ANY symbol – This indicator works on any chart that makes highs and lows thru time.
  
• It works on ANY timeframe or bar resolution
  
• It works on ANY bar or candle type
  
• It works dynamically to analyze chart behavior, and always draws LRC’s from valid points
  
• Simple to use, saves the time it takes to draw the channels, always updates
  

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