The Linear Regression Channel indicator offers a way to visualize a market's price trend over a specific period. It displays a central linear regression line accompanied by two channel lines that may indicate potential areas of support and resistance. These features may assist traders in understanding potential trend directions and market volatility.
Lower: Functions as the lower boundary of the channel, potentially serving as an area where prices may find support.
LinReg: This is the central line that aims to represent the best fit of price data over a specified period, serving as a reference for the trend's potential direction.
Upper: Functions as the upper boundary of the channel, potentially serving as an area where prices may face resistance.
Parameters:
Price: The default setting uses the 'Close' price for calculations. Options for customization include 'High', 'Low', 'Open', 'Volume', and 'VWAP'.
Width: Default set at 100. Adjusting this parameter changes the distance between the central LinReg line and the Upper and Lower boundaries, effectively widening or narrowing the channel.
Linear Regression Channel Indicator on chart
*Please note that these observations are for informational purposes and should not be construed as financial advice.