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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (36826)	4/24/2002 2:16:48 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68048

Thanks Tim, I think me broker manage to clear it up. ************************ The theory behind regression analysis is that the regression line (the middle line of the channel) identifies the slope of the trend, while the upper and lower rails form the channel. While the stock or index is in the channel, the upper rail should act as resistance and the lower rail should act as support. I typically look for breakouts above (or below) the channel for trades, as those moves can be explosive. As I was going through my charts, I noticed that many indices were testing support at the lower rail of short-term, uptrending channels. This is important because a break of this support would trigger a technical short signal. (I emphasize technical because I would still need to look at sentiment to determine if it was tradable.) This is a situation I'll be watching closely over the next couple of days, and one I thought might be interesting to you. schaeffersresearch.com Look for linkt to: Regression Channel Thoughts: Channel Charts of the CYC, INDU, RLX, SOX, SPX, and XBD