Enhanced Linear Regression Channel
Unfortunately this indicator is no
longer available, but you may find Historical Regression Channel an interesting alternative!
Description
- If you had to guess what price would be tomorrow, a logical guess would be "close to today's price." If prices are trending up, a better guess might be "close to today's price with an upward bias."
- Linear regression analysis is the statistical confirmation of these logical assumptions.
- The Enhanced Linear regression channels contain price movement, with the bottom channel lines providing support and the top channel lines providing resistance.
- Prices may extend outside one of the channels for a short period of time. However if prices remain outside the channel for a longer period of time, a reversal in trend may be imminent.
Key Features
- Calculations can be based on Standard Error OR Standard Deviation
- Each of 3 channels can be defined "X" deviations away
- Regression Channel Line can extend "X" bars ahead of price
