ArithmaReg Candles [NeuraAlgo]

ArithmaReg Candles [NeuraAlgo]

ArimaReg Candles provide a quantitative approach toward the visualization of price by rebuilding each candle using an adaptive regression model. This indicator eliminates much of the noise and micro-spikes and consolidates irregular volatility of raw OHLC data, which typically characterizes candles, into a much cleaner and more stable representation that better reflects the true directional intent of the market.



The algorithm applies a dynamic state-space filter to track the equilibrium price, truePrice, while suppressing high-frequency fluctuations. Noise in the price is extracted by comparing the raw close to the filtered state and removed from the candle body and wick structure through controlled adjustment logic. Finally, a volatility-based spread model rebuilds the candle's range to maintain realistic price geometry.

The direction of trends is given by comparing the truePrice against a smoothing baseline, permitting ArithmaReg Candles to underline the bullish and bearish phases with more clarity and much-reduced distortion. This yields a chart where transitions within trends, pullbacks, and momentum shifts are much easier to comprehend than their representation via traditional candles.

ArithmaReg Candles are designed for traders who require consistent, noise-filtered price structure-ideal for trend analysis, breakout validation, and precision entries. The indicator itself does not generate any signals; it only refines the visual environment so that your existing tools and decision models become more reliable.

How It Works

• Micro-Price Extraction
  A weighted micro-price is calculated to represent the bar's internal structure and reduce intrabar irregularities.
  
  
• Adaptive Regression Filter
  The state-based regression engine continuously updates price equilibrium, adjusting its confidence level. This gives the filter the ability to remain responsive during strong movements yet be stable during noisy periods.
  
  
• Noise Removal & Candle Reconstruction
  The difference between raw price and truePrice is considered noise. This noise is subtracted from OHLC values, and a volatility-scaled spread restores realistic wick and body proportions. What results is a candle that depicts true directional flow.
  
  
• Trend Classification
  A smoothed trend baseline is computed from the filtered price, and candle color is determined by whether the market is positioned above or below this equilibrium trend.
  

How to Use It

• Identify True Trend Direction
  Candles follow the cleaned price path so that you can differentiate valid trend shifts from temporary spikes or wick-driven traps.
  
  
• Improve Existing Strategies
  These candles will complement your existing indicators, be they Supertrend, moving averages, volume tools, or momentum oscillators, by giving you a more sound price basis.
  
  
• Spot Clean Breakouts & Pullbacks
  Reduced noise makes breakout structure, swing highs/lows, and retracements significantly clearer. This is particularly useful in fast markets like crypto and Forex.
  
  
• Improve Entry & Exit Timing
  By highlighting the underlying flow of price, ArithmaReg Candles help traders avoid false signals and pinpoint spots where the price momentum is actually changing.
  
  
• Adaptable to All Timeframes & Assets
  The filter is self-adjusting, so it performs consistently on scalping timeframes, intraday charts, swing setups, and all asset classes. Summary ArithmaReg Candles create a mathematically refined view of market structure by removing noise and reconstructing candles through adaptive regression. The result is a more refined, stable price representation that improves trend recognition and decision-making and enables professional-grade technical analysis.