Linear Regression Channel
(Linear Regression Channel) channel is a linear regression line is a graphical tool that allows you to determine the most probable range of price fluctuations. The channel consists of two parallel lines, equidistant from the line of linear regression trend. The distance from the boundaries of the channel trend line of linear regression is calculated as the maximum deviation of closing prices from the linear regression trend lines for the selected time interval. It is believed that the price rarely goes beyond the canal, the upper line denoting, in this case, resistance, and the bottom - support. A deeper channel going beyond the current trend portends change.
