Linear Regression Channel
Trend, Lin reg channel
- What it shows
A straight trend line fitted to recent prices, with two parallel channel lines at an equal distance on either side.
- How it is built
A least-squares line is fitted to the last N bars, and the channel is that line shifted up and down by a multiple of the standard deviation.
- How to use it
- The slope shows the trend.
- Price touching the outer lines is read as stretched.
- The channel is redrawn as new bars come in.
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