Regression Channels with Trend Filter [Volensy] Indicator

Overview

Regression Channels with Trend Filter [Volensy] plots a linear regression “equilibrium” line with inner/outer deviation bands, then prints BUY/SELL shapes only when price reaches statistical extremes and a volatility oscillator confirms the move. It’s designed as a fast mean-reversion + context tool for lower timeframe execution (and, per the author’s usage note, it’s commonly paired with Heikin Ashi candles for scalping).

How It Works

• Regression midline: A linear regression of close over the selected Regression Period.
• Channel width: Standard deviation over the same period.
• Inner bands: Midline ± (StdDev × Inner Band Multiplier).
• Outer bands (extremes): Midline ± (StdDev × Outer Band Multiplier). Defaults are optimized differently for STOCK vs CRYPTO modes.
• Trend filter (optional): An SMA filter can be enabled in STOCK mode. In CRYPTO mode it is always disabled by design.
• Volatility oscillator (signal-only): Smoothed Stochastic %K/%D is calculated but not plotted; it is used only to validate entries.

What You’ll See on the Chart

• Blue regression midline (equilibrium).
• Faded inner bands (upper/lower).
• Thicker outer bands (upper/lower) drawn with step-style line breaks.
• Orange SMA line (always plotted; only acts as a filter when STOCK mode + Trend Filter is enabled).
• Optional background highlighting when price closes beyond the outer bands.
• Lime triangle-up BUY markers and red triangle-down SELL markers.