For illustrative purposes only, not a recommendation.
Description
Regression channel consists of two parallel lines plotted equidistantly above and below the Regression Line. The distance at which the lines are plotted can be calculated using different algorithms.
In order to add the regression channel to chart, choose it from the Active Tool menu. Specify begin and end points of regression line: these will be snapped to the closest bars. Application will automatically adjust the slope of the lines based on linear regression.
For your convenience, we added a label to the regression channel, which displays its principal parameters: the length (as expressed in both number of bars and time units such as days, hours, minutes, depending on the timeframe you are using), the price change correspondent to the difference between its start and end points (expressed in both absolute and percentage values), its slope, and the deviation value calculated in the specified mode (as an absolute value and also as a percentage of middle line start point value).
Properties
Appearance:
Visible. Set this property to "No" in order to hide the regression channel.
Label position. Defines where the regression channel label should be shown.
Show label. Defines whether to always show the label at the specified position, or on mouse hover only, or to hide it completely.
Left extension. Set this property to "On" to extend the regression channel all the way to the left. Note: this action will not recalculate the whole channel, but just extend the existing lines.
Right extension. Set this property to "On" to extend the regression channel all the way to the right. Note: this action will not recalculate the whole channel, but just extend the existing lines.
Mode. Defines the algorithm to calculate the distance at which the lines are plotted: Standard deviation(standard deviation of price), Standard error(standard deviation between price and regression line), Equidistributed deviation (average deviation between price and regression line), Raff channels (maximum deviation between price and regression line), Raff channels high/low (maximum deviation between high/low and regression line) , or Segment high/low (deviation between maximum high/minimum low and regression line).
Price. Defines the price with which the standard deviation and distance are calculated.
Calculation:
Length. Defines the number of bars for which the linear regression is calculated. Note: after recalculation, the bars will be added to or removed from the right endpoint of the lines.
Begin point:
Date/Time. Defines the time scale value corresponding to the begin point.
End point:
Date/Time. Defines the time scale value corresponding to the end point.
Deviation curves properties:
This section allows you to add extra parallel lines to the regression channel. These can be located within the channel and outside it.
Visible. Defines which of the extra lines should be visible.
Coefficient. Defines the distance between the extra line and regression line. This distance is equal to the value defined by the calculation mode, multiplied by the coefficient.
Color. Defines the color of the line.
Style. Defines whether the line should be drawn as solid, long-dashed, or short-dashed.
Width. Defines the line width in pixels.
