Regression Channel

Brief

The section explains how to work with a regression channel.

Details

You can use two regression channels: Standard Deviation Channel and Raff Regression Channel. They both are created based on the linear regression trend line drawn using the least square method. Both channels are formed by lines above and below the trend line. The difference is in the way of defining the distance between the trend line and the upper and lower lines:

• Standard Deviation Channel uses distances in standard deviations.
• Raff Regression Channel uses the greatest distance between a high or low price and the trend line.