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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (21881)	7/19/1998 11:52:00 PM
From: William H Huebl	Read Replies (1) \| Respond to of 94695

Glad to help Bob, In simple terms, if you plot a least square regression line through a series of price plots, the Raff channel can be approximated by drawing parallel lines centered on the regression line and whose distance is the MAXIMUM of the distancee of the deviation of any price to that line. So what you get is an upper and lower trend line where the price plot is within that channel. Almost invariably, when prices get outside that channel, they reverse and move back inside. Hope that helps. Bill PS Here is the help info from Equis: Developed by Gilbert Raff, the regression channel is a line study that plots directly on the price chart. The Regression Channel provides a precise quantitative way to define a price trend and its boundaries. The Regression Channel is constructed by plotting two parallel, equidistant lines above and below a Linear Regression trendline. The distance between the channel lines to the regression line is the greatest distance that any one high or low price is from the regression line. For more detailed information on using the Raff Regression Channel, we recommend the book Trading the Regression Channel by Gilbert Raff (available directly from Equis International).