Linear Regression Channel

SETTING MANUAL

1/ What is the Linear Regression Channel indicator? 

Introduction: 

  • The Linear Regression Channel for TradingView is an advanced trading tool to identify key turning points and trend directions in the market with precision.
  • This indicator is designed to adapt dynamically to market movements, making it ideal for various trading environments and suitable for all trading durations, from quick intra-day scalps to longer-term swing trades.

Benefits:

  • Dynamic Support and Resistance Identification: The Linear Regression Channel excels in marking dynamic support and resistance levels, offering a clear visual representation of potential market turning points.
  • Real-time Market Adaptation: This indicator continually adjusts to live market changes, ensuring that the trade setups it provides are timely and aligned with current market conditions.
  • Versatility Across Multiple Markets: Whether trading forex, stocks, indices, or commodities, the Linear Regression Channel provides relevant and reliable insights, making it a versatile tool for a wide range of financial instruments.
  • Strategy Enhancement: By highlighting potential entry and exit points within the market's natural price movement, this indicator aids traders in making informed and strategic trading decisions.
  • Customizable Alerts and Settings: Equipped with various alert options, including pop-up, sound, email, and push notifications, the Linear Regression Channel can be tailored to fit individual trading preferences and strategies.

2/ Indicator Setting - Linear Regression Channel

Lookback Period: This setting adjusts the number of bars the indicator considers for calculating the Linear Regression Channel. A higher number provides a broader market perspective, while a lower number offers a more immediate view.

Dev 1, Dev 2, Dev 3, Dev 4: These settings determine the standard deviation levels for the channel lines. Dev 1 sets the first deviation level, Dev 2 the second, and so on. These levels help identify potential support and resistance areas.

Styling Settings:

Central Line Color: This option allows you to choose the color for the central line of the Linear Regression Channel, which represents the mean price level.

Dev 1 Line Color: Select the color for the first standard deviation line. This line often acts as the first layer of support or resistance.

Dev 2 Line Color: Select the color for the second standard deviation line, marking a stronger level of potential support or resistance.

Dev 3 Line Color: Select the color for the third standard deviation line, which can indicate significant support or resistance areas.

Dev 4 Line Color: Select the color for the fourth standard deviation line, representing an extreme but less frequently tested support or resistance level.

Central Line Width: Adjust the thickness of the central line for better visibility and differentiation from other lines.

Dev 1 Line Width: Customize the thickness of the first deviation line to distinguish it from other lines in the channel.

Dev 2 Line Width: Customize the thickness of the second deviation.

Dev 3 Line Width: Customize the width of the third deviation line.

Dev 4 Line Width: Adjust the thickness of the fourth deviation line, which is often used to identify extreme market conditions.