Linear Regression

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © goodgains


//@version=5
indicator("Linear Regression", overlay=false)

// @keywords: linear-regression-v3, tt-squeeze-release, bollinger-keltner-squeeze, linear-regression-momentum, release-count-plot, squeeze-on-off-state, bb-kc-comparison, momentum-direction, squeeze-duration-count, orange-release-counter, panel-indicator, linreg-deviation, keltner-channel-squeeze, true-range-kc, multi-state-background, squeeze-timeframe, regression-val-plot, bb-length-mult, kc-length-mult, momentum-regression

// squeeze settings
squeeze_timeframe   = input.timeframe("", title = 'Squeeze Timeframe', group = 'Squeeze Settings', inline = '1')
length              = input.int(20, title="BB Length    ", group = 'Squeeze Settings', inline = '2')
mult                = input.float(2.0,title="BB MultFactor  ", group = 'Squeeze Settings', inline = '3')
lengthKC            = input.int(20, title="KC Length    ", group = 'Squeeze Settings', inline = '4')
multKC              = input.float(1.5, title="KC MultFactor  ", group = 'Squeeze Settings', inline = '5')
useTrueRange        = input.bool(true, title="Use TrueRange (KC)", group = 'Squeeze Settings', inline = '6')

var int bg_color = 0
var int sqz_count = 0
var int release_count = 0
var int sqz_type = 0

// Calculate BB
source = close
basis = ta.sma(source, length)
dev = multKC * ta.stdev(source, length)
upperBB = basis + dev
lowerBB = basis - dev

// Calculate KC
ma = ta.sma(source, lengthKC)
range_src = useTrueRange ? ta.tr : (high - low)
rangema = ta.sma(range_src, lengthKC)
upperKC = ma + rangema * multKC
lowerKC = ma - rangema * multKC

sqzOn  = (lowerBB > lowerKC) and (upperBB < upperKC)
sqzOff = (lowerBB < lowerKC) and (upperBB > upperKC)
noSqz  = (sqzOn == false) and (sqzOff == false)

val = ta.linreg(source  -  math.avg(math.avg(ta.highest(high, lengthKC), ta.lowest(low, lengthKC)), ta.sma(close,lengthKC)), lengthKC,0)

// lime=1 green=2 red=-1 maroon=-2
bg_color := val > 0 and val > val[1] ? 1 : val > 0 and val < val[1] ? 2 : val < 0 and val < val[1] ? -1 : -2

sqz_type := sqzOn ? 1 : sqzOff ? -1 : sqz_type[1]
sqz_count := sqz_type == 1 and sqz_type[1] != 1 ? 1 : sqzOn ? sqz_count[1] + 1 : sqz_count[1]
release_count := sqz_type == -1 and sqz_type[1] != -1 ? 1 : sqzOff ? release_count[1] + 1 : release_count[1]


plot(release_count, color = color.orange)