regressionTrend

This tool draws a regression line between two points and creates a statistical “best fit” channel. It helps you see the average direction of price and whether candles are trading above or below the trend.

Syntax

regressionTrend(fromPoint, toPoint, styles?)

Parameters

• fromPoint: First anchor (use time). Defines where the regression starts.

• toPoint: Second anchor. Defines where the regression ends.

• styles (optional) Customize the channel:

  • linestyle (number) – Defines the style of the regression line (0 = solid, 1 = dotted, 2 = dashed).

  • linewidth (number) – Sets the thickness of the regression line.

  • precision (string) – Controls how many decimal places are displayed.

  • styles.baseLine (BandsStyles) – Style for the main regression line (color, width, and style).

  • styles.upLine (BandsStyles) – Style for the upper deviation line.

  • styles.downLine (BandsStyles) – Style for the lower deviation line.

  • styles.extendLines (boolean) – If true, the regression line extends beyond the selected points.

  • styles.showPearsons (boolean) – Displays or hides Pearson’s correlation coefficient on the chart.

  • styles.transparency (number, 0–100) – Sets the transparency (0 = visible, 100 = invisible).

Return Value

• string — Unique drawing id.

Example

This script plots a regression trend every 50 candles, starting from 30 candles ago up to the current one.

//@version=1
init = () => {
    // Show drawings on the main price chart
    indicator({ onMainPanel: true, format: 'inherit' });
};

onTick = () => {
    // Every 20 candles, create a regression channel
    if (index % 40 === 0) {
        const start = time(30);   // Start point 60 candles ago
        const end = time(10);   // End point 10 candles ago

        regressionTrend(start, end, {
            // Basic line style
            linestyle: 0,                // Solid line
            linewidth: 2,                // Thicker main line
            precision: "2",              // Show 2 decimals in values

            // Custom styles for each component
            styles: {
                baseLine: { color: color.blue, linewidth: 2 },   // Main regression line
                upLine: { color: color.green, linewidth: 1 },  // Upper deviation
                downLine: { color: color.red, linewidth: 1 },    // Lower deviation

                extendLines: false,        // Extend beyond selected points
                showPearsons: true,       // Display Pearson’s correlation
                transparency: 20          // Slight transparency on the tool
            }
        });
    }
};

In this example:

• linestyle is set to solid, but you can try 1 (dotted) or 2 (dashed).

• linewidth is 2 for better visibility.

• precision ensures values are shown with two decimals.

• baseLine / upLine / downLine each have their own colors and thickness.

• extendLines lets the regression continue past your anchor points.

• showPearsons displays the correlation value, which is helpful to confirm how “strong” the trend is.

• transparency makes the drawing slightly lighter so it doesn’t dominate the chart.

Result

Tips

• Perfect for checking if price is moving smoothly in a trend or drifting away from its average.

• Watch how price reacts to the upper and lower bands — they often act as dynamic support/resistance.

Warning

• If your points are too close (like only 2–3 candles apart), the regression won’t be meaningful.

• Too many regression channels at once can overlap and cause confusion.

Good Practice

• Use regression channels on medium-to-large ranges (20–50 candles) for clearer results.

• Stick to calm colors (aqua, gray) so regression lines don’t overpower your main drawings.