Linear Regression Channel

Linear Regression Channels (LRC)
A Linear Regression Channel is a indicator used to determine the trend a security is developing and the most probable price range that will take place within that trend.

Linear Regression Channels
A technical indicator used to determine the trend a security is developing and the likely price range that will take place within that trend.

Linear Regression Channel
Similar to the 200-day Moving Average, large institutions often look at long term Linear Regression Channels. A Linear Regression Channel consists of three parts: ...

Linear Regression Channel 50% and 100%
The idea of the Linear Regression Channel 50% is close to the Linear Regression Channel but the upper and lower lines are drawn at the distance of one, not of two, ...

The Linear Regression Channel is created by drawing parallel lines above and below the Linear Regression trendline using two standard deviations.

Linear Regression Channel indicator plots a straight trendline on the price chart and the two standard-deviation lines above and below the trendline.

An extension to this is 'Linear Regression Channels' - rather like Bollinger Bands, these are two parallel lines above and below the trendline at a fixed distance (the maximum distance in the timeframe under examination).

A popular method of using the Linear Regression trendline is to construct Linear Regression Channel lines. Developed by Gilbert Raff, the channel is constructed by plotting two parallel, equidistant lines above and below a Linear Regression trendline.

Some technicians use Bollinger Bands for this purpose, others use a short term (3 months or so) linear regression channel or percent bands.

See also: Linear Regression, Channel, Regression, Chart, Indicator