Three-Period Linear Regression Trend Ribbon Indicator

Summary

This indicator summarizes the direction of three linear regression series, calculated over different lookback periods, as a compact colored ribbon beneath the price chart. For each period, it compares the current regression value with the previous value and assigns a positive or negative color level according to whether the estimate rose or fell. The example uses periods of 10, 14, and 30 bars, allowing traders to view short-, medium-, and longer-period direction together without displaying the regression lines over price.

A fourth, very short regression series supplies an additional ribbon level to keep the plotted bands visually aligned. The document provides an implementation example but no trading rules, backtest, performance evidence, or guidance on selecting periods. The ribbon indicates recent slope direction only; it does not establish trend strength, forecast returns, or account for transaction costs and risk. Its signals may also disagree across periods or change as new bars arrive.

Key ideas

• The indicator compares each linear regression value with its previous value to classify its direction.
• Three lookback periods display short-, medium-, and longer-term slope information together.
• Positive and negative color levels create a compact ribbon below the price chart.
• The example describes visualization logic but provides no evidence of trading performance.

Tags

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