[blackcat] L1 Jon Andersen R-Squared Indicator

12. Juni 2021

Level: 1

Background

The R-Squared indicator created by Jon Andersen in "Standard error bands" in the September 1996 STOCKS & COMMODITIES .

Function

This script fristly creates the coeffR function which is used to produced the R-Squared indicator. The coeffR function is used to calculate the correlation coefficient R. Once I have created and verified the coeffR function, the R-Sqaured indicator can be built easily.

Key Signal

AvgSqrR --> Smoothed R-Squared Oscillator Output.

Labels and alerts are added.

Remarks

Feedbacks are appreciated.


Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

18. Apr.

Versionshinweise

OVERVIEW

The [blackcat] L1 Jon Andersen R-Squared Indicator is a powerful tool designed to help traders analyze market trends using the coefficient of determination (R-squared). This indicator calculates the R-squared value over a specified period, providing insights into the strength of the trend. It plots the average squared R value, along with upper and lower thresholds, to help identify potential buy and sell signals. The script also includes alerts for these signals, making it easier for traders to act on market movements.

FEATURES

📈 Customizable Price Source: Select from various price sources like high, low, close, etc.
🔍 Adjustable Length: Set the length over which the R-squared value is calculated.
📊 Average Squared R Value: Plots the smoothed average of the squared R value.
🎯 Thresholds: Includes upper and lower thresholds for better visualization.
🛒 Buy/Sell Signals: Identifies and plots buy and sell signals based on changes in the average squared R value.
🔔 Alerts: Provides alerts for buy and sell signals to notify traders of potential trading opportunities.
HOW TO USE

Add the Script: Copy and paste the script into the Pine Editor on TradingView.
Set Parameters:
Price Source: Choose the desired price source (e.g., hl2, close).
Length: Set the period over which to calculate the R-squared value.
Average Length: Define the period for smoothing the squared R value.
Interpret the Plot:
The plot shows the average squared R value, with yellow indicating an upward trend and fuchsia indicating a downward trend.
Use the upper and lower thresholds to gauge the strength of the trend.
Act on Signals:
Buy signals are indicated by green labels with "BUY".
Sell signals are indicated by red labels with "SELL".
Set up alerts to receive notifications for these signals.
LIMITATIONS

The indicator relies on historical data and may not predict future market movements with absolute accuracy.
The effectiveness of the indicator can vary depending on market conditions and the asset being traded.
Always use this indicator in conjunction with other analysis tools for better decision-making.
NOTES

The script uses the Mozilla Public License 2.0. Ensure you comply with the license terms when using or modifying the code.
The author, blackcat1402, has contributed significantly to the development of this indicator.