Regression Channel Indicator

Regression channel indicator is made by Gilbert Raff, so this indicator often called with Raff Regression Channel indicator. Reg Channel indicator consists 2 or more trend line above and below the market price. The width of the Linear Regression channel reflects the distance between the highest price and lowest price in certain period.

How to read Regression channel indicator
If the market price move up within regression indicator, the bullish trend. If the market price move down within regression indicator, the bearish trend. So how to read trend reversal with this indicator? simple, if you see the market price breaks the channel line it means trend reversal potential.

The Regression channel indicator can be built to read the current market price trend or identify the trend. This indicator also can identify the support and resistance levels.

Many Foreign exchange traders like this indicator because the simplicity of the indicator and also can be traded in order to determine the market trend. We can easily determine bullish and bearish trend in the market.

How we determine trend reversal potential using this indicator? just like other channel indicator or other technical indicator. Basically we used closing price as a confirmation pattern. For an example if the market price close outside the channel, it indicates the market trend reversal.

If you want download and use it as your trading tool, you can easily download using this link Regression Channel Indicator. And you can download this indicator for free.