A Technical Analysis tool based on the Linear Regression Trendine and the specified number of Standard Deviations. It is attached on the chart by selecting the first price representing the beginning of the trend and then dragging the mouse to the second price in the direction of the trend.
It consists of three lines:
- Linear Regression Trendline
- Upper Channel Line
- Lower Channel Line
- 68% of the prices will fall within the range of 1 standard deviation of the Linear Regression Trendline
- 95% of the prices will fall within the range of 2 standard deviation2 of the Linear Regression Trendline
- 99.7% of the prices will fall within the range of 3 standard deviations of the Linear Regression Trendline
Prices trading above or below the Channel Lines hint for a reversal.
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