The Linear Regression Channel Variable indicator is designed to analyze market price movements within a defined period. This indicator displays a central linear regression line while dynamically adjusting the support and resistance levels to align with current market conditions. These features may provide traders with insights into potential trend directions and market volatility.
Linear Regression: This central line aims to represent the prevailing price trend over a specified period, based on current and past price data.
Resistance Level: Dynamic upper boundary that functions as a potential area of resistance.
Support Level: Dynamic lower boundary that serves as a potential area of support.
Parameters:
Price Type: By default, calculations are based on the 'Close' price, but this can be changed to other options like 'High', 'Low', 'Open', 'Volume', and 'VWAP'.
Width of Channel: The default setting is at 100, and adjustments to this parameter affect the distance between the Linear Regression line and the Resistance and Support levels.
Full Ranges: This setting can be toggled on or off, affecting the visual scope of the indicator lines on the chart.
Length: Initially set at 21 periods, this can be customized to change the time frame for the linear regression calculations.
Linear Regression Channel Variable Indicator on chart
*Please note that these observations are for informational purposes and should not be construed as financial advice.