Filtered Buy/Sell Signals After Stochastic Extreme Crossover

//version=5
indicator("Filtered Buy/Sell Signals After Stochastic Extreme Crossover", overlay=true)

// Define parameters
lr_period = 6
tma_period = 5
stoch_k = 8
stoch_d = 4
stoch_smooth = 4

// Compute Linear Regression Forecast (6, close)
linRegForecast = ta.linreg(close, lr_period, 0)

// Compute Triangular Moving Average (5)
tma = ta.sma(ta.sma(close, math.ceil(tma_period / 2)), tma_period)

// Compute the Average Line
averageLine = (linRegForecast + tma) / 2

// Compute Stochastic (8,4,4)
k = ta.sma(ta.stoch(close, high, low, stoch_k), stoch_smooth)
d = ta.sma(k, stoch_d)

// Track last confirmed Stochastic crossovers
var float lastBuyCrossover = na
var float lastSellCrossover = na

if ta.crossover(k, d) and k < 30
lastBuyCrossover := bar_index // Store the bar index of last Buy crossover below 30

if ta.crossunder(k, d) and k > 70
lastSellCrossover := bar_index // Store the bar index of last Sell crossover above 70

// Define Buy & Sell Signal Conditions with Confirmation
buySignal = ta.crossover(linRegForecast, tma) and lastBuyCrossover > lastSellCrossover
sellSignal = ta.crossunder(linRegForecast, tma) and lastSellCrossover > lastBuyCrossover

// Plot the indicators
plot(linRegForecast, color=color.blue, title="Linear Regression Forecast")
plot(tma, color=color.green, title="Triangular Moving Average (TMA)")
plot(averageLine, color=color.white, title="Average Line", linewidth=2) // White Average Line

// Plot Buy and Sell Signals
plotshape(series=buySignal, location=location.belowbar, color=color.green, style=shape.labelup, size=size.small, title="BUY")
plotshape(series=sellSignal, location=location.abovebar, color=color.red, style=shape.labeldown, size=size.small, title="SELL")