This is a combination of the Lux Algo Nadaraya-Watson Estimator and Envelope. Please note the repainting issue.
In addition, I've added a plot of the actual values of the current barstate of the Nadaraya-Watson windows as they are computed (lines 92-95). It only plots values for the current data at each time update. It is interesting to compare the trajectory of the end points of the Estimator and Envelope to the smoothing function at each time update. Due to the kernel smoothing at each update the history is lost at each update (repaint).
I've added a feature to allow adjustment to the kernel smoothing algorithm as suggested by thomsonraja (line 59).
The settings and usage are repeated from Lux Algo below.
Settings
Window Size: Determines the number of recent price observations to be used to fit the Nadaraya-Watson Estimator. Bandwidth: Controls the degree of smoothness of the envelopes , with higher values returning smoother results. Mult: Controls the envelope width. Src: Input source of the indicator. Kernel power: See line 59, adjusts the exponential power (powh) as suggested by thomsonraja Kernel denominator: See line 59, adjusts the denominator (den) as suggested by thomsonraja
Usage
This tool outlines extremes made by the prices within the selected window size. This is achieved by estimating the underlying trend in the price using kernel smoothing, calculating the mean absolute deviations from it, and adding/subtracting it from the estimated underlying trend.
I repeat Lux Algo's caution: 'we do not recommend this tool to be used alone or solely for real time applications.'
Looks very good ! Thanks ! , and its better to make entries ? You have other combination with this indicator? Thanks for share✅
capam
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@Kao_5MIN, The combination is the Lux Algo Nadaraya-Watson Envelope and Estimator in one indicator. You can also compare the motion of the endpoints with the repainted Envelope and Estimator. Sorry for the confusion. Thanks for the comment.
GreedyBastardpro
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the alerts are not working, are they supposed to trigger when the top/bottom lines are crossed or when the triangles show???
capam
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@ezprofitbuddypro, Thanks for the question. The alertcondition of lines 97 & 98 is a legacy from Lux Algo. This is a quote from the pine script reference manual regarding alertcondition: 'Creates alert condition, that is available in Create Alert dialog. Please note, that alertcondition does NOT create an alert, it just gives you more options in Create Alert dialog. Also, alertcondition effect is invisible on chart.' Hope this helps.
koushikpaul
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Please avoid this repainting indicator. Frankly, what is the use of this useless thing that cannot be actually used at all?
Kao_5MIN
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After one day using it, is working Awesome very more accurate! Thanks for share please make more updates ✅
capam
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@Kao_5MIN, Thanks. If you have suggestions for updates please advise.
kennairne
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Why have you changed the alert function from the Up and Down to Plots? The alert was working perfectly before.
Hustle-Barbie303
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Is there any way to make the estimator line solid instead of dashed?