Regression Channel (Interactive)

Weighted Interactive Regression Channel (WIRC)
Overview
The Weighted Interactive Regression Channel improves on traditional regression channels by emphasizing key price points through intelligent weighting. Instead of treating all candles equally, WIRC adapts to market dynamics for better trend detection and channel accuracy.

Key Differences from Standard Channels
Weighted vs. Equal: Prioritizes significant events over uniform weighting

Dynamic vs. Static: Adapts in real time to market changes

Accurate vs. Basic: Reduces noise, enhances signal clarity

Customizable vs. Fixed: Full control over weights and visuals

Weighting Methods
Direction Change – Highlights reversal points via local peaks/troughs

Volume-Based – Emphasizes high-volume candles, ideal for breakouts

Price Range – Weights wide-range candles to capture volatility

Time Decay – Prioritizes recent data for current market relevance

Interactive Features
Data Range: Set channel start/end over 1–500 bars

Visuals: Line styles, color coding, fill options, reference lines

Stats: Slope, R², standard deviation, point count, weight method

Technical Implementation
Weighted Regression Formula: Uses weights for slope, intercept, and deviation

Channel Lines: Center = weighted regression; bounds = ± deviation × multiplier

Usage Scenarios
Trend Analysis: Use Direction Change + longer range

Breakouts: Use Volume weighting + fill + boundary watching

Volatility: Apply Price Range weighting + monitor standard deviation

Current Market: Use Time Decay + shorter ranges + stat display

Parameter Tips
Channel Width:

Narrow (1.0–1.5): Responsive

Standard (1.5–2.0): Balanced

Wide (2.0–3.0+): Conservative

Weighting Intensity:

Conservative (1.5–2.0)

Moderate (2.0–3.0)

Aggressive (3.0+)

Advanced Use
Multi-Timeframe: Use different weightings per timeframe

Market Structure: Detect swings, institutional zones

Risk Management: Dynamic S/R levels, volatility-driven sizing

Best Practices
Start with Direction Change

Test different ranges

Monitor stats

Combine with other indicators

Adjust to market context

Recalibrate regularly

Conclusion
WIRC delivers a smarter, more adaptive view of price action than standard regression tools. With real-time customization and multiple weighting options, it’s ideal for traders seeking precision across strategies—trend tracking, breakout confirmation, or volatility insight.