Sen Regression Channel

Sen Regression Channel

OVERVIEW

The Sen Regression Channel is a trend-structure visualization tool built on the Theil–Sen estimator, a median-based regression method designed to reduce sensitivity to price outliers. Unlike traditional least-squares regression channels, this approach anchors trend using the most representative slope across the lookback period, resulting in a more stable and noise-resistant structure.

TECHNICAL LOGIC & ORIGINALITY

To protect the proprietary implementation of the median-slope engine and adaptive band construction, this script is published as Protected.

Median Slope Engine
Calculates the Theil–Sen slope by evaluating the median rate of change across the lookback window, producing a trendline less distorted by extreme candles or transient volatility.

Adaptive Volatility Bands
Channel width can be derived from either Standard Deviation or ATR, allowing the envelope to adjust dynamically to changing volatility regimes.

Multi-Reference Context (Optional)
VWAP and EMA/SMA overlays can be enabled to compare the median regression structure against commonly used price and volume-weighted references.

HOW TO USE (EDUCATIONAL)

This tool is designed to help analyze trend quality and market structure, not to generate trade signals.

Trend Direction & Stability
A sustained upward or downward slope of the median regression line indicates directional structure with reduced noise sensitivity.

Volatility Expansion Zones
Price closing outside the channel bands highlights volatility expansion relative to the median trend and may signal regime change.

Mean-Reversion Context
Price oscillation between the median line and bands reflects balanced conditions; movement toward the outer bands indicates relative extension.

VWAP Confluence
Alignment between the regression midline and VWAP may highlight areas of consensus value.

USER INPUTS

Lookback Period – Sets the window for the median slope calculation

Band Multiplier – Scales the channel width

Band Method – Standard Deviation or ATR-based envelope

Visual Overlays – Toggle VWAP, midline, and cloud transparency

NOTES

This script is a historical charting and visualization tool for educational purposes only.
It does not provide trade signals, alerts, or financial advice.
All values are calculated in real time using available chart data.