# Volumetric Regression Heatmap

Volumetric Regression Heatmap is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Volumetric Regression Heatmap surrounds a volatility-adaptive regression fit with volume-weighted heat bands, showing where activity concentrated relative to the trend. Mean-reversion signals mark closes beyond the deviation bands while the channel is flat, delta histograms estimate buying and selling pressure from each bar's close position, and the fit projects forward.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 22, 2026.
- Access: free.
- Concepts: [Linear-regression Channel](https://www.luxalgo.com/library/concept/linear-regression-channel/) (primary), [Volume Profile](https://www.luxalgo.com/library/concept/volume-profile/), [High/low-volume Nodes](https://www.luxalgo.com/library/concept/high-low-volume-nodes/)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmqqumd5u000ahu0b00kg8vuf
- Page: https://www.luxalgo.com/library/indicator/volumetric-regression-heatmap/

**Volumetric Regression Heatmap** bins traded volume by its distance from a fitted [regression channel](https://www.luxalgo.com/library/concept/linear-regression-channel/) midline and paints the result as heat bands around the trend. Higher-intensity bands mark where the market traded heavily relative to the fit, Gaussian smoothing keeps the gradient readable, and the fit's period expands or contracts with an ATR-based volatility ratio so the channel stays relevant as conditions change. A projection extends the structure into upcoming bars as a map of where price statistically tends to gravitate.

## How to Trade the Volumetric Regression Heatmap?

- **High-intensity bands**: volume-dense zones around the trend, liquidity that tends to slow an approach or provoke a reaction rather than let price slice through.
- **Mean-reversion signals**: mark closes that crossed beyond the upper or lower standard-deviation band, and print only while the current fitted channel is flat (its total rise below the Flat Slope Threshold times its standard deviation); a lower-band signal reads as oversold within the channel, an upper-band signal as overbought. The whole set is redrawn against the latest fit, so past signals can shift or disappear as the channel updates; treat them as context within the current channel rather than fixed entry points.
- **Delta histograms**: bars along the channel's top and bottom show estimated buying and selling volume, split by where each bar closed within its range, as a read on whether pushes away from the midline carry pressure.

## Volumetric Regression Heatmap Settings

- **Source / Base Period**: the input series and the standard regression window.
- **Dynamic Auto-Adjusting Period**: lets volatility shorten the fit in fast markets and lengthen it in stable ones.
- **Grid Rows Each Side / Gradient Smoothing / Heatmap Colors**: band count per side, gradient smoothing, and palette.
- **Signal Band (SD Multiplier) / Flat Slope Threshold**: the deviation level that triggers signals, and the maximum channel height allowed for them to print.
- **Display extras**: delta histogram scale and width, Future Projection Length, an edge-of-chart volume profile histogram, and the dashboard with position and size options.

## Frequently Asked Questions

### When are the mean-reversion signals most dependable?

When the channel is flat, the condition the Flat Slope Threshold enforces. A steep slope means trend pressure, where fading band touches is a much harder proposition.

### How does it relate to the Volume Profile Regression Channel?

Both marry volume with a fitted channel. The [Volume Profile Regression Channel](https://www.luxalgo.com/library/indicator/volume-profile-regression-channel/) bins volume into angled sections between two anchors you choose; the heatmap runs continuously with a volatility-adaptive period and adds signals plus delta histograms.

### Is the Volumetric Regression Heatmap free to use?

Yes. Access comes free with the LuxAlgo Library, and the tool can be explored in Quant, our coding agent, without leaving the page. You can also copy the source code from this page and run it anywhere Pine Script® runs.

## Related indicators

- [Linear Regression Histogram](https://www.luxalgo.com/library/indicator/linear-regression-histogram/) (Linear-regression Channel): markdown at https://www.luxalgo.com/library/indicator/linear-regression-histogram.md
- [Periodic Linear Regressions](https://www.luxalgo.com/library/indicator/periodic-linear-regressions/) (Linear-regression Channel): markdown at https://www.luxalgo.com/library/indicator/periodic-linear-regressions.md
- [Volume Profile Regression Channel](https://www.luxalgo.com/library/indicator/volume-profile-regression-channel/) (Linear-regression Channel): markdown at https://www.luxalgo.com/library/indicator/volume-profile-regression-channel.md
- [Machine Learning Regression Trend](https://www.luxalgo.com/library/indicator/machine-learning-regression-trend/) (Linear-regression Channel): markdown at https://www.luxalgo.com/library/indicator/machine-learning-regression-trend.md
- [Linear Regression](https://www.luxalgo.com/library/indicator/linear-regression/) (Linear-regression Channel): markdown at https://www.luxalgo.com/library/indicator/linear-regression.md
- [Volume Profile (Maps)](https://www.luxalgo.com/library/indicator/volume-profile-maps/) (Volume Profile): markdown at https://www.luxalgo.com/library/indicator/volume-profile-maps.md
- [Volume Profile Matrix](https://www.luxalgo.com/library/indicator/volume-profile-matrix/) (Volume Profile): markdown at https://www.luxalgo.com/library/indicator/volume-profile-matrix.md
- [Peak Activity Range](https://www.luxalgo.com/library/indicator/peak-activity-range/) (High/low-volume Nodes): markdown at https://www.luxalgo.com/library/indicator/peak-activity-range.md

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Source: https://www.luxalgo.com/library/indicator/volumetric-regression-heatmap/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
