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What is regression channel analysis?
Author: Ivan Yaller
Website: http://www.InvestingYes.com
Added: Tue, Oct 31, 2006 8:29:12
Category: Investing Questions
             
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Regression channel analysis refers to the product of a process in statistics called linear regression. It works this way. The so-called "best fit" line is drawn to the middle of the set of data points that encompass a period from the day of significant low to the day of significant high. The inclination of the said line is referred as midpoint, which reflects the real nature of the trend.

The second part of the analysis is done with computer software that draws a parallel line. Here, regression channel still works as a standard deviation and the middle line acts as a median.

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Ivan Yaller answers frequently asked investing questions at PrettyGreatAnswers.com.

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