ClearPath Trader

Linear Regression Channel

Regression midline with parallel standard-error (or sigma) channels. Frames statistically typical price travel.

Category: Trend · Complexity: ★★★☆☆ (3/5)

Tags: trend, live-overlay, price

Live chart overlay: LRC

Linear Regression Channel chart illustration

Formula

Regression midline ± k·standard error of residuals

How to read

Outer rails frame typical travel. Touches of the outer channel can mark stretch; midline is the fair-trend magnet.

Limitations

Assumes roughly linear drift. Breaks during regime changes.

Typical settings

100 period, 2σ channel

Linear Regression Channel is part of the ClearPath Encyclopedia of Indicators — 190 models explained with standard SVG illustrations, so you can study an indicator before you put it on a live chart.

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