AI Dynamic SR Trend Lines Enhanced

# Dynamic Support/Resistance Lines Using Linear Regression

## What Makes This Script Original

This script differs from standard pivot-based support/resistance indicators by applying **linear regression analysis** to clusters of recent pivot points instead of simply connecting the last two pivots. While many scripts plot lines between individual swing points, this approach calculates the "line of best fit" through multiple recent pivots (3-5 points), creating statistically-derived trend lines that better represent the overall price trajectory.

## Core Methodology

**Pivot Collection & Filtering:**
- Detects swing highs and lows using configurable left/right lookback periods
- Applies ATR-based filtering to exclude minor pivots that don't represent significant price structure
- Uses angular filtering to reject excessively steep trend lines (over 45 degrees by default)

**Linear Regression Calculation:**
- Collects the most recent 2-5 valid pivot points (user configurable)
- Applies least-squares linear regression to find the optimal line through these points
- Updates dynamically as new pivots form, maintaining relevance to current market structure

**Enhancement Features:**
- Optional logarithmic price scaling for percentage-based analysis
- EMA confluence detection that increases line "strength" when trend lines align with moving averages
- Automatic line pruning when price moves significantly away (customizable ATR multiples)
- Visual strength indication through line thickness based on pivot count and confluence

## Key Differences from Standard Approaches

**vs. Simple Pivot Connections:** Uses statistical best-fit rather than arbitrary point-to-point lines
**vs. Fixed Trend Lines:** Dynamically adapts as new market structure develops
**vs. Manual Drawing:** Automatically identifies and plots the most statistically relevant levels

## Practical Application

The resulting support and resistance lines represent the mathematical trend through recent price structure rather than subjective line drawing. This creates more consistent and objective trend analysis, particularly useful for:
- Identifying key levels for entries/exits
- Confluence analysis when combined with other technical tools
- Systematic approach to trend line analysis

## Important Limitations

- Lines recalculate as new pivots form (this is intentional for dynamic adaptation)
- Requires sufficient pivot history to generate meaningful regression lines
- Should be used as part of comprehensive analysis, not as standalone signals
- Past performance of trend lines does not guarantee future effectiveness

## Technical Implementation Notes

The script uses arrays to maintain rolling collections of pivot points, applies mathematical linear regression formulas, and includes multiple filtering mechanisms to ensure only statistically significant levels are displayed. All visual elements and calculation parameters are fully customizable to suit different trading styles and timeframes.