Linear Regression Channel consists of two parallel lines, equidistant up and down from the lines of linear regression trend. The distance between frame of the channel and regression line equals to the value of maximum close price deviation from the regression line (Kstd).
There are 3 types of regression channel that this indicator can plot on the chart. One is the linear channel (displayed above), the other two are the polynomial and the parabolic channels.
The green lines are the lines of the regression: the upper one is drawn by the High prices, the lower one – by the Low prices. This indicator is redrawn with the coming of a new bar.
Regression Channel settings
Kstd = channel distance from the regression lines (green)
Bars = history bars
Free download Regression Channel.
Nikita Craig (verified owner) –
I like this indicator because it helps me to trade with the trend and avoid false signals. The indicator shows me when the price is in a strong trend, either up or down, by the slope of the channel. It also shows me when the price is overbought or oversold, by touching or crossing the outer lines. I can use these signals to enter or exit trades, or to set stop loss and take profit levels. The indicator is easy to install and use, and it works well