Adaptive Market Profile with Regression Channels and Activity Zones

Summary

This indicator combines a price regression channel with a profile of activity across the channel. It can select a channel period by comparing absolute Pearson correlations for candidate lookback lengths, or use a manually chosen period. A switch threshold can reduce changes between similar candidate periods, and selection may be limited to closed bars. A logarithmic price option supports charts using log scaling.

Within the channel, the script divides the price range into sections and estimates activity either by counting touches or allocating each candle’s volume across the sections its price range overlaps. It can display the most active levels, the profile, and channel statistics. These are visual measures derived from the selected historical window; the document provides no trading rules, backtest results, or evidence that activity zones predict future price behavior. Adaptive-period selection and distributed-volume estimates also depend on user settings and chart data.

Key ideas

• The indicator can choose a lookback period based on the strongest absolute Pearson correlation between price and bar position.
• A configurable threshold can help prevent frequent switches between similarly correlated periods.
• The regression channel can be calculated in price space or logarithmic price space.
• The activity profile uses candle touches or distributes volume among channel sections overlapped by candle ranges.
• The displayed active levels summarize historical activity and are not presented with predictive or backtest evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.