Description
π Polynomial Price Projection Channel
https://chartshots.spotware.com/c/699603101593d
π WHAT DOES IT DO?
https://chartshots.spotware.com/c/69960348da652
Fits a mathematical curve over the last N price closes and extends it into the future as a projection. Around that curve it draws an upper and lower channel whose width automatically adapts to recent market volatility.
βοΈ HOW DOES THE LOGIC WORK?
- Takes the last N candles (Lookback Bars) and calculates the polynomial curve that best fits those prices using least squares.
- Extends the curve forward (Forecast Bars) as a mathematical projection of the current trend.
- Builds the channel by shifting the curve up and down using the maximum candle range of the analyzed period Γ 2.
https://chartshots.spotware.com/c/6996039a07e3a
π οΈ KEY PARAMETERS
Parameter
Default
Purpose
Lookback Bars
80
How many historical candles it analyzes
Forecast Bars
20
How many candles it projects forward
Polynomial Order
4
Curve flexibility (higher = more curves)
Data Input
Close
Base price for the calculation
π― HOW TO USE IT?
π’ Potential Buy β Price touches the lower band and the projection points upward.
π΄ Potential Sell β Price touches the upper band and the projection points downward.
β οΈ Always confirm with other factors before trading. This indicator is a mathematical extrapolation, not a guaranteed prediction.
Summary
Key parameters include:
- Lookback Bars: number of historical candles analyzed.
- Forecast Bars: number of candles projected forward.
- Polynomial Order: degree of the polynomial curve.
- Data Input: price type used (close).
The channelβs upper and lower bands adjust dynamically to recent market volatility, providing potential buy signals when price touches the lower band with an upward projection, and potential sell signals when price touches the upper band with a downward projection. It is designed for use across various markets including Forex, cryptocurrencies (e.g., BTCUSD), commodities (e.g., XAUUSD), indices, and stocks. Users should confirm signals with additional analysis as the indicator provides mathematical extrapolations rather than guaranteed predictions.
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