Adaptive Trend Kernel

📘 Adaptive Trend Kernel — Smoothed Regression Trend with Dynamic Bands

The Adaptive Trend Kernel is a regression-based trend indicator that dynamically adapts to market volatility.
It combines linear regression with standard deviation bands to identify directional bias, momentum shifts, and potential entry zones with high precision.

This tool helps traders visualize the underlying trend and filter out market noise by plotting a smooth regression line (the "kernel") surrounded by upper and lower deviation bands.
The indicator also provides crossover-based buy and sell signals when price crosses above or below the adaptive regression line.

🔍 How It Works

Regression Line: A linear regression line smooths the closing price to represent the dominant market direction.

Volatility Bands: The upper and lower bands (based on standard deviation) expand or contract according to market volatility.

Signal Triggers:
• Long Signal (Green Triangle): When price crosses above the regression line.
• Short Signal (Red Triangle): When price crosses below the regression line.

Trend Labels: Optional “Up” and “Down” labels appear on crossover points for better visual clarity.

💡 Trading Strategy

Trend Following: Enter long when a green “Up” signal appears, confirming an upward crossover.
Exit when the price touches the upper band or when a red “Down” signal appears.

Reversal Catching: In ranging markets, watch for quick crossovers near the bands — these often precede short-term pullbacks.

Volatility Filter: When the bands widen, volatility is high — consider using smaller position sizes or waiting for confirmation.
Narrowing bands often indicate consolidation and upcoming breakout potential.

⚙️ Features

Adjustable Regression Length and Band Multiplier

Customizable colors, transparency, and label visibility

Lightweight and repaint-free by design

Works well on all timeframes and asset classes (Forex, Crypto, Stocks, Gold)

🧭 Recommended Use

Use this indicator as a trend confirmation tool or entry filter in combination with momentum or volume indicators.
Best results occur when aligned with higher timeframe trend direction.