stelaraX - Linear Regression Channel

stelaraX – Linear Regression Channel

stelaraX – Linear Regression Channel is a statistical price channel designed to visualize trend direction, trend strength, and price deviation from a regression-based mean. By applying linear regression and standard deviation bands, it provides an objective framework for trend analysis and mean reversion.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
stelarax.com

Core logic

The Linear Regression Channel calculates a best-fit regression line through price over a defined lookback period and builds parallel bands based on statistical deviation.

Key principles:

* the regression line represents the statistically optimal trend path
* standard deviation measures typical price dispersion around the trend
* upper and lower bands define dynamic deviation boundaries
* the channel adapts continuously to changing market conditions
* price position within the channel reflects trend strength and bias

Sustained movement near the upper band indicates strong bullish pressure, while sustained movement near the lower band indicates strong bearish pressure.

Visualization

The script plots:

* the linear regression midline directly on the price chart
* upper and lower channel boundaries based on deviation
* a shaded fill between the bands for visual clarity
* individually configurable colors for midline, bands, and fill

This structured visualization makes trend slope and deviation easy to interpret at a glance.

Use case

This indicator is intended for:

* identifying trend direction and trend strength
* analyzing price deviation and mean reversion
* defining dynamic support and resistance zones
* filtering entries and exits in trending markets
* supporting statistical and AI-assisted trading approaches

It works well on higher timeframes and integrates seamlessly with price action and structure-based analysis.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.