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1.
Linear Regression
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Investor/RT Tour
( more on Technical
Indicators )
Indicator-A-Day Series
Regression Review
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Since we will be working on assembling and testing 5.4.4 today, I won't have time to get into a new indicator..... So today I'll just do a brief review of the Regression studies we've looked at over the last 4 days...and I continue to encourage your feedback for the web site...
Day 1
Linear Regression
http://www.linnsoft.com/tour/techind/linReg.htm
A new channeling method was added, called Raff Channels. This method bases the channel on a maximum distance between any closing price and the regression line. We also determined that the method for standard deviation calculation needed to be modified (thanks to Bill S.) to consider price distance from regression trendline as opposed to price distance from average price. Several helpful strategies for using regression lines were shared by users. Information on Raff
Channels, Standard Deviations, User Strategies and more can all be found on the web page mentioned above.
Day 2
Linear Regression Forecast (LRF)
Linear Regression Bands
Linear Regression Oscillator
http://www.linnsoft.com/tour/techind/linRegForecast.htm
We discovered that the LRF indicator is really several great indicators built into one: a forecasting tool, a moving regression channel, and a standard deviation oscillator. We applied our new standard deviation calculation method to this indicator as well in computing the bands and the oscillator. The Linear Regression Oscillator was added as a new option to this indicator and provides a useful value representing the number of standard deviations of price from the linear regression line. Several useful strategies and a custom indicator were shared. All can be found on the web page above.
Day 3
Linear Regression Slope
http://www.linnsoft.com/tour/techind/linRegSlope.htm
A normalizing option was added to make this indicator comparable among instruments that don't necessarily trade in the same range. This indicator tells us how steep the regression line (using period specified) is at any time.
Day 4
Linear Regression Acceleration
http://www.linnsoft.com/tour/techind/linRegAcc.htm
A normalizing option was also added to Linear Regression Acceleration, making it comparable among instruments that don't necessarily trade in the same range. This indicator tells us the change in slope. A positive value of Acceleration tells us the slope is increasing while a negative value of Acceleration tells us the slope is decreasing.
I would still like to encourage everyone to share their strategies using the indicators above and I will post these strategies to the respective pages on the web site.
After looking at a chart involving the linear regression oscillator, slope, and acceleration yesterday, I want to further investigate creating (and optimizing) a signal that involves all 3 tokens.
We'll get started on a new line of indicators tomorrow...
Chad |
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