Kernel Envelope

Kernel Envelope is a non-repainting dynamic band system designed to identify price overextension, trend exhaustion, volatility expansion, and high-probability reversal points.
Using a kernel-based smoothing technique, the indicator builds adaptive upper and lower envelopes that respond fluidly to market structure while maintaining exceptional stability for systematic trading.

These envelopes form the core of the system and allow traders to:

Detect bullish rebounds from the lower band

Detect bearish rejections from the upper band

Filter trend-following entries using volatility context

Identify zones where price is statistically stretched

Highlight exhaustion points during impulsive moves

The indicator also includes an integrated pivot-based trendline engine, which draws dynamic support and resistance levels derived from structural highs and lows.
These lines auto-extend forward and include breakout alerts, making them ideal for breakout traders, liquidity hunters, and structure-based strategies.

Key Features

Fully non-repainting envelope calculation

Adaptive smoothing responsive to market volatility

Clean gold/silver visual theme for maximum clarity

Glow-style rendering for enhanced band visibility

Automatic trendline generation using pivot points

Breakout alerts for upper and lower trendlines

Rebound and rejection alerts on envelope interaction

Works on all markets and timeframes

Whether you trade reversals, breakouts, or trend continuation setups, Kernel Envelope provides a reliable, low-noise framework for identifying high-quality trade signals.

Acknowledgment

This indicator is inspired by the original Nadaraya-Watson Envelope by LuxAlgo, whose work served as the foundation for further research and development.

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