Pearsons R historic breaks ( for making strategy out of it )

26 Des 2020

Pearsons R adjustments of linear regressions is a good tool to analyse visually the trend basis channeling of the market,
one of the common challenges in the scripts which i came across the tradingview community is the lack of the historic places put over the charts where the price actually crossed up/below the channel boundaries,

For me in order to do so we would have to replay the scripts over and over.

So I came up with an addon extension to a good script on the community (tradingview.com/script/FZXagyA6-Linear-Regression-Auto-Adjust-To-Ideal-Pearson-s-R-Min-Max/)

I have added the historic marks over the charts ( blue/green/red/orange Arrows which you see on the charts)
These arrows are the places where the price have crossed the channel boundaries historically
So,

Blue arrow = Bull Intent ,Place where the upper channel boundary line have been crossed
Orange arrow = Bear Intent , Place where the Lower channel boundary line have been crossed

Green arrow = Bull Max , Place where the Maximum Upper channel boundary line have been crossed
Red arrow = Bear Max , Place where the Minimum Lower channel boundary line have been crossed

For me this type of approach is good for making a strategy out of the concepts visually, in congestion to other indicators
I would suggest you guys to check this on alert basis with your setups to derive out the best from linear regressions



Lastly it would be a pleasure to give credits to the creators of Pearsons R scripts in Tradingview
@midtownsk8rguy
TradeBoneDogs
@x11joe [this code base is inspired from tradingview.com/script/FZXagyA6-Linear-Regression-Auto-Adjust-To-Ideal-Pearson-s-R-Min-Max/]

Also thanking Tradingview for providing us such an awesome community and platform :)