20 April 2016

How I Use The Linear Regression Channel [LRC] Indicator In My Simple Trading


"We have an unknown distance yet to run, an unknown river to explore. What falls there are, we know not; what rocks beset the channel, we know not; what walls ride over the river, we know not. Ah, well! we may conjecture many things."
 John Wesley Powell
===============================

In this video I walk through how I use the Linear Regression Channel Indicator in one of my own day trading setups. The Linear Regression Channel is a three-line technical indicator, which outlines the high, the low, and the middle of a trend or price move being analyzed. 

The indicator was developed by Gilbert Raff, and is often referred to as the Raff Regression Channel. The Linear Regression indicator is typically used to analyze the upper and lower limits of an existing trend. It helps traders to find optimal entry and exit points during price tendencies on the chart. 

Structure of the Linear Regression Channel Indicator -- The Linear Regression Channel indicator consists of three parallel lines – the upper line, lower line and the median line. 

Upper Linear Regression Line -- The upper Linear Regression Channel line marks the tops of a trend. It is built by going through the most projecting top on the chart. The lower and median line will be parallel to this upper line. 

Lower Linear Regression Line -- The lower Linear Regression Channel line marks the bottoms of a trend. It is built by going through the most projecting bottom on the chart. The upper and median line will be parallel to this lower line. 

Median Linear Regression Line -- The median line is the base of the Linear Regression Channel indicator. It draws the midpoint of the trend. The upper and lower lines are evenly distanced from this middle line.


==========================

You might also like:

My Most Popular Posts

Follow Me On YouTube

TAOST Topics

How To Trade Emotional Capital simple trading Bitcoin How It Works Simple Day Trading swing trading stalk candidate Daily Simple Trading Habit how to trade Bitcoin trade idea Process price action simple trading tools what to buy what to trade Best Retirement Investments Chart Patterns Focus New Trader Sins Swing Trade TAOST Trading principles TAOST market update day trading lifestyle keep it simple risk risk management support and resistance trading psychology trends Are you too old Confidence FAQ FASTQ How To Invest Income streams It takes as long as it takes MAR Retirement Crisis Retirement Investment Retirement Trading Trade Pattern compounding day in the life of a day trader how to day trade learn to trade performance improvement sell signal side hustle the power of simple trading rules trend persistence ultimate side hustle Buy Signal Coil Distraction How To Trade EUR How to trade SPCE Mistakes Oh S#!t Gap Oil Optimization Process Ownership Portfolio Trade Private Equity Professional Gap Retirement 911 Risk Arbitrage S&P 500 Sacrifice Shooting Star Trading & Poker Trading Components Trading Myths Value Why You're Only 1 Setup Away chaos theory context diversification downtrend extra money financial freedom how much money how to information is the stock market random kis linear regression channel lock limit down meditate money money management negative compounding optimize thinking pandemic position size quantum leap improvement random random market update risk management plan sector selloff simple day trading risk management stock broker trading intraday trading secrets training trend analysis