162
by mrtools
linear regression 2
From Mladen :::::
The channel on that version(linear regression) is made to be as the built in liner regression channel indicator. If I understand what are you aiming for, you are right : they (in the linear regression channel) are using a rather naive way of constructing a channel. The goal in that version was to put them all "under one hat" ...
Maybe (not maybe but probably) this version here is a better way to do a channel "construction". In this one channel upper and lower bands are calculated from a standard error of a linear regression (added multiplier for flexibility reason only but default channels is "2 errors" wide. sort of speaking. and I think it is good enough even for estimate). Unlike the previous version you will notice that the bands are not widened if the price breaks out, so it can even be used as a kind of breakout indicator. All this is still just a scratching on the surface of linear regression can be used to make much more things but all in due time (when everything is 100% checked and 100% sure (I would hate to be responsible for irresponsible claims or indicators)
So, to end : it looks similar, but the channel is far, far away from the previous version and from the metatrader built in linear regression channel (in the example I used a 50 period linear regression to make the difference more obvious - the built in channel and a channel from previous version would be much wider, and it is interesting to see where the price "danced the most" and what was the range in this example )
. But it can have all the latest averages types (38 types) and is using the usual set of 22 price types
