Standard Deviation Channel with Signals

Standard Deviation Channel with Signals

This Pine Script is a **Standard Deviation Channel (or Linear Regression Channel) indicator** designed for TradingView. It automatically draws a channel around price action based on statistical deviation from a central linear regression trendline.

Here is a breakdown of its key features:

* **Trend Identification:** It calculates a linear regression line (the "mean" price) over a user-defined length (default 128 bars) to show the current trend direction.
* **Volatility Bands:** It plots parallel upper and lower bands at specific standard deviations (e.g., ±1 and ±2 deviations) from the center line. These act as dynamic support and resistance levels.
* **Actionable Signals:** It generates **"BUY"** signals when the price crosses below the lower deviation band (suggesting the asset is oversold) and **"SELL"** signals when the price crosses above the upper deviation band (suggesting it is overbought). This logic is based on a Mean Reversion strategy.
* **Historical & Live Visualization:** Unlike standard versions that only show the channel for the *current* moment, this script plots the historical path of the bands so you can backtest visual signals, while also projecting the live channel forward for real-time analysis.