LeavittConvolutionAcceleration

Description

The Leavitt Convolution Acceleration study is a technical indicator designed by Jay A. Leavitt, PhD. Based on linear regression, this indicator estimates the momentum of the projected price change. Here is how Leavitt Convolution Acceleration is calculated:

1. Using the Time Series Forecast indicator, the study estimates the price projected for the next and the current bar. The estimated price is based on the least-squares method. The calculated values may substantially differ from the actual prices.

2. Using linear regression, the study extrapolates this value to find a projected price change (convolution slope) for the next and the current bar.

3. The study then calculates the difference between the two calculated values.

The resulting extrapolated value is shown as a histogram on a lower subgraph. By default, sections of the histogram where the extrapolated value is increasing are shown in green; sections corresponding to the decreasing value are shown in red.

Note: Value projection is purely mathematical as all calculations are based on the least-squares averaging of previous values.

Input Parameters

Parameter Description
price The price for which the convolution slope is to be found.
length The period for which the linear regression is to be calculated.

Plots

LeavittConvolutionAcceleration The Leavitt Convolution Acceleration histogram.
ZeroLine The zero level.

Further reading

1. "Trading The Tech Emini With The Leavitt Convolution" by Jay A. Leavitt, PhD. Technical Analysis of Stocks & Commodities, January 2020.

*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.

 

 

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