[SS] Linear Modeler

2023년 8월 20일

Hello everyone,

This is the linear modeler indicator.
It is a statistical based indicator that provides a likely price target and range based on a linear regression time series analysis.

To represent it visually, all the indicator does is it represents a linear regression channel and actually plots out the range at various points based on the current trend (see the chart below):



The indicator will perform the same assessment, but give you a working range and timeline for targets.
As well, the indicator will back-test the range and variables to see how it is performing and how reliable the results are likely to be.

General Functions:



In the chart above you can see all the various parameters and functions.

The indicator will display the most likely target (MLT) to be expected within the next pre-determined timeframe (by candles).
So for the first target, the indicator is saying within the next 10 candles, BA's MLT is 221.46 and based on BT results the reliability of this assessment is around 46%.

The indicator will also display the anticipated range at each designated timeframe.
In the chart above, we can see that at 20 candles, the likely range that BA should be trading in is 204 and 238 with a reliability of around 62% based on previous performance.

Plot Functions:

As this is performing a linear time series projection, you can have the indicator plot the projected ranges. Simply go to the settings menu and select the desired forecast length:



This will plot out the desired range and result over the specified time period. Here is an example of BA plotted over the next 50 candles on the hourly:



You can technically use this as an SMA/EMA type indicator, just keep in mind it may be a bit slower than a traditional EMA and SMA indicator, as it is processing a lot of data and plotting out forecasted data as opposed to an SMA or EMA.

If you wish to use it as an EMA or SMA, you can unselect the "Display Chart" Function to hide the table, and you can also select the "Plot Label" function. This will display the current projection analytics directly on your plotted line so you don't need to reference the table at all:



Tips on use:

I use this on the larger and smaller timeframes. On all timeframes, I will look to targets that display 90% to 100% in the BT results.
Bear in mind, this does not mean that we will 100% of the time hit this target, these targets can fail, it just means that there is a higher confidence of hitting this target than other, less reliable targets.

I will plot these targets out if they fall within the implied range of the timeframe I am looking at and will act on them according to the price action.

This is a great indicator to use in combination with other range based indicators. If you use the implied range from options to help guide your trading, you can see which targets are likely to be hit based on the current trend that fall within that implied range.
You can also assess the strength of the trends at various points in time and have an actionable range with a reliability reading at various points in time.


That is pretty much the bulk of the indicator.
Hopefully you find it helpful and useful.
As always, leave your questions and suggestions below.

Thanks for reading and checking it out!

2023년 8월 20일

릴리즈 노트

Quick error fix.

2023년 8월 28일

릴리즈 노트

Another quick fix!