Universal logarithmic growth curves, with support and resistance

The Universal logarithmic growth curves, with support and resistance indicator provides a multi-level logarithmic regression model designed to identify long-term support and resistance zones across any financial asset. It aims to model data where growth or decay is initially rapid and then decelerates over time, making it ideal for assets with decades of price history.

Usage

The Usage section focuses on interpreting the confidence intervals generated by the regression model.

• Entry Points: Traders may consider market entry when the price falls below the 25% or 5% confidence lines, which historically represent significant support zones.
• Take Profit Points: Potential take-profit levels occur when the price moves above the 75% or 95% confidence lines, indicating overextended growth.
• Support & Resistance: The script highlights specific levels as support (green) or resistance (red) based on standard deviation multipliers, helping to visualize macro-trend boundaries.
• Scale Settings: For the curves to display correctly, users must set their price axis to "Logarithmic" scale.

Details

This script utilizes logarithmic regression to fit a curve to long-term price data. Unlike static models that are hardcoded for specific assets like Bitcoin, this tool dynamically calculates regression coordinates for any ticker. It generates 14 distinct levels based on Fibonacci ratios and standard deviation multipliers, allowing for a granular view of price action relative to its historical growth curve. The "Curvature Constant" allows the model to adjust the exponential transform, ensuring the curve accurately reflects the asset's specific growth trajectory.

Settings

Methods

• Method: Choose between "Automatic" (using all available history) or "Manual" (using a specific lookback range).
• (Optional) Range: The number of bars to include in the regression when the Manual method is selected.
• Steps of drawings: Controls the resolution of the plotted lines. Higher values may improve performance on long-term charts.

Colors

• Resistance level color: Sets the color for the upper boundary lines.
• Support level color: Sets the color for the lower boundary lines.
• Other line color: Sets the color for intermediary Fibonacci levels.

Regression boundaries

• Stdev multipliers: Adjusts the width of the top and bottom lines relative to the mean regression, defining the volatility boundaries.

Fib levels

• Fib level N: Defines the relative position of the internal lines. Setting a value to 0.5 centers the line, while other Fibonacci ratios create the characteristic "zones."

Linear adjustments

• Linear lift up factor: Vertically shifts the entire set of lines across the Y-axis.
• Curvature constant: Adjusts the base value of the exponential transform; higher values result in more aggressive upward curves.

FAQ

How can I access the Universal logarithmic growth curves, with support and resistance? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Why do the lines look like straight segments? This is typically due to the "Logarithmic" scale not being enabled on your price axis. Right-click the price axis and select "Logarithmic" to view the intended curvature.

Can this be used for assets other than Bitcoin? Yes, this script is designed to be universal. It dynamically calculates the regression for any ticker you load, provided there is sufficient historical data to establish a trend.