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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?


To: Walkingshadow who wrote (6326)3/11/2005 11:59:35 PM
From: J.K.  Read Replies (1) | Respond to of 8752
 
T,

Thanks again for a great answer. You've raised my interest and so I did a Google search to learn some more on regression channels, saving you the effort I know you would provide. It does seem to derive from linear regression, at least how I learned it. Why I never thought about using it for trading, I don't know, but its a natural application.

Answering some of my questions: the middle line in these charts is a linear regression trendline, "exactly" in the middle of the prices. The parallel lines are set at 2 standard deviations, meaning that 95% of all the data points are contained within.

When the trend changes, I'll be interested to see how you all adjust your settings and handle the shift.

Maybe the obvious answer is that when a shorter-term trend changes, you have to pull back to the next longer-term trend until enough data points are in place for defining the next short-term trend.

Thanks again for the helpful info. and attitude,
J.K.

For any lurkers who also might be interested:

schaeffersresearch.com
marketscreen.com
stockworm.com
ensignsoftware.com