Nadaraya Watson Channel

Nadaraya Watson Regression is a famous statistical estimator used to determine a point using a kernel as a weighting function. This indicator uses Nadarya Watson Regression line to draw a channel that could identifies the extreme zones for the price.

The extreme areas of the channel define the overbought and oversold zone. When the price touches the upper area, this may signal a sign of buying exhaustion, and in contrast, when it touches the lower channel, it may signal selling pressure.

All lines on the chart are provided as plots to be used in your Algo Trading/Strategy Automation.