ARTICLE SYNOPSIS...A market follows its primary trend in a zigzag form. The trend direction is easy to see; the real challenge lies in identifying the minor trends. Price channels are a technique used to discover the outer boundaries of the market's action concerning a t
ARTICLE SYNOPSIS...REGRESSION CHANNEL ANALYSIS To construct a regression channel (Article Figure 16) from the last key high or low on a weekly chart, we built a least-squarest best-fit regression line Z to the next key low or the last trading day, whichever is lower. To d
ARTICLE SYNOPSIS...Trading The Regression Channel by Gilbert Raff Every trader has had the experience of selling a stock or commodity too soon during a rapid price reversal, only to realize in retrospect that this was a consolidation within a trend. Or just the opposite: