Standardized Linear Regression (Percentage)

Goal of the script:
To maximize profit and success rate by timing entries on the pullback, in the direction of the overall trend.

How is this done?
This is done thorough the Fragmented EMA (FEMA) and Multi-Point Acceleration tool.
-FEMA is an EMA, deriving 4 different lines. The benefit of FEMA is that these lines work together as a single entity to quickly tell if something will be going up, or down. The lines are color coded in the order of rainbow to easily remember the sequence.
a. ROYG (Red; Orange; Yellow; Green)
If you see from top to bottom (ROYG), it means that overall the trend is up, and you
should look to only go long on the pullback during this time.
b. GYOR (Green; Yello; Orange; Red)
If you see from top to bottom (GYOB), it means that overall, the trend is down, and
you should look to only go short on the pullbacks during this time.
So, to put it simply, the FEMA shows the overall direction of the financial instrument and tells us which side of the trade we should be taking: ROYG = Long and GYOR = short

Sample of an Uptrend:


Sample of a Downtrend:


-Multi-Point Acceleration tool:
Multi-Point Acceleration tool analyzes multiple periods to detect acceleration in price. It oscillates around the zero line, with the readings below zero showing acceleration downward, and readings above zero showing acceleration upward. Multi-Point acceleration tool is listed in percentage terms, so that it can be comparable between assets.

Multi-Acceleration tool is also color coded to easily see the acceleration and deceleration above and below zero to see if acceleration is slowing down or speeding up. The following colors show this:
a. Aqua where the Multi-Point Acceleration tool is above zero, and its upwards
momentum is increasing.
b. Blue where the Multi-Point Acceleration tool is above zero, and its upward
momentum is slowing down.
c. Red, where the Multi-Point Acceleration tool is below zero, and its downward
momentum is increasing.
d. Yellow, where the Multi-Point Acceleration tool is below zero, and its downward
momentum is slowing down.

Acceleration Colors When Acceleration is Positive:


Acceleration Colors When Acceleration is Negative:


The Multi-Point Acceleration tool is also available as a separate code (Note this particular indicator includes both FEMA and Multi-Point Acceleration indicator); For more examples and info about Multi-Point Acceleration, you can visit the link of this script as a separate indicator:

The Strategy Using Multi-Acceleration Tool and FEMA Together
-Entries to Go Long
We Enter Long When:
a. FEMA is in ROYG order, meaning that overall direction of the trend is up
b. Acceleration tool is below zero (Negative acceleration) and is weakening (Yellow colored
bars)
OR
Acceleration tool crosses from below 0, to above 0. This shows that financial instrument
is in the state of a pullback, and is starting to accelerate back upward.

Showing Long Entries (Aggressive):


-Entries to Go Short:
We Enter Short When:
a. FEMA is GYOR order, meaning that overall direction of the trend is down
b. Acceleration tool is above zero (Positive acceleration) and is weakening (Blue colored bars)
OR
Acceleration tool crosses from above 0, to below 0. This shows that financial instrument
is in the state of a pullback, and is starting to accelerate back downward.

Important Notes:
a. Should wait for the "buy arrow" or "sell arrow" candle to close and enter long on the next candlestick. This is because there is no guarantee that it will remain a "buy arrow" or "sell arrow" candle until the close.

b. The code contains 2 sets of signals :
-Regular Long Signal (White Up Arrow): This is the signal generated when the
Acceleration Tool crossed from below zero to above zero.
-Regular Short Signal (Purple Down Arrow): This is the signal when the Acceleration Tool
crosses from above zero to below zero.
and
-Long Signal Aggressive (Green Up Arrow): This is the signal generated when the
AccelerationTool is below 0 and starting to lose the downward acceleration (Yellow
histograms)
-Short Signal Aggressive(Red Down Arrow): This is the signal generated when the
Acceleration Tool is above 0 and starting to lose upward acceleration (Blue histograms)

The reason why they are labeled as aggressive entries is because these entries are made when acceleration is still negative but starting to change to positive. These entries will be earlier than regular entries, but there is risk that acceleration will turn back to negative (red histograms) and continue downward. The choice is your which ones you want to use, and you can un-check the other pair in the menu, to hide them from the chart if you wish.

Showing Regular Entries (Long)


Showing Difference between Regular and Aggressive long and short entries.


Price Targets to Exit Trades:
-Exit Long Trades:
To exit a long trade, you need to target the prior swing high before the pullback. Ignore the wicks, and only use the body of the candle when planning your price target. That is the minimal (first) target that you should strive for, and another target should be a break above the prior swing high.
Alternatively, you can use Fibonacci ratios for price targets. ( for subscribers only I will explain the ratios that need to be used, as well as how to use the tool).

How to set price targets after long entries.


More examples of price targets for long positions:


-Exit Short Trades:
To exit short trade, you need to target the prior swing low before the pullback as your first target. You also should ignore the wicks, and only use the body of the candle when setting your price target. Your second target should be the breakout down below the prior swing low if it happens.


Example of Price Target: prior swing low/prior swing high


Example of Price Target of Prior Low, ignoring the wicks/body only


-Additional Examples of Trades:











Extra Features:
a. The script is customizable, and changes can be made in the indicator settings. Follow the link below if you need to learn how to access the indicator settings.

tradingview.com/support/solutions/43000480333-how-to-adjust-the-indicator-settings/

b. The script has an alert feature where you can set an alert which will alert you when a long signal or a short signal is generated.
There are 4 alerts that can be chosen
1. Regular Long Signal ---> "Long Condition Alert" in the Alert settings
2. Aggressive Long Signal ---> "Long Condition AG Alert" in the Alert settings
3. Regular Short Signal ---> "Short Condition Alert" in the Alert settings
4. Aggressive Short Signal ---> "Short Condition AG Alert" in the Alert settings.

If you need help setting up an alert, please see the following link:
tradingview.com/support/solutions/43000595315-how-to-set-up-alerts/

-VERY IMPORTANT
Please remember that no indicator or script can guarantee success, and its effectiveness may change according to market conditions, as past results do not indicate future performance. Always consider your risk tolerance and investment goals before trading. Always back-test your trades to ensure that your trading is profitable before trading live.