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.