|9/9/2002 3:42:32 PM
|Linear Regression Channels|
Standard deviation flag
Center Linear Regression Line(45,1.0)
Top Linear Regression Line(60,0.75)
Top Linear Regression Line(60,2.0,1)
Bottom Linear Regression Line(90)
||The linear regression is built by computing a least-squares line over the specified last number of days. This line represents and expectation of where the price should be. To create the linear regression channels, we use the popular method of finding the point furthest from the least squares line and create two channels of equal width from that point.
StockFetcher allows you to customize the width of the channel through a scaling factor. By entering a scaling factor of 0.50, a channel of half the normal width is created.
By specifying a '1' for the third parameter, the width of the channel is based on the n-day standard deviation of the close.