Custom Forex Linear Regression Tool Indicator For MT4
The uLinRegrBuf indicator for MetaTrader4 is a custom Linear Regression Tool. The indicator was developed by Gilbert Raff and is sometimes called the Raff Regression Channel.
This tool is essentially a linear regression with equally spaced trend lines aligned above and below. The channel’s width is centered on the high or low that is extreme from the linear regression.
The uLinRegrBuf indicator can be drawn to define the existing trend and subsequently forecast the trend. As price surges within the channel, the trend is said to be bullish. A buy signal reverses when price crosses below the channel extension.
When price declines within the channel, the trend is said to be bearish. In the same vein, the bearish trend reverses when price crosses above the channel extension.
Once we can establish the Raff Regression Channel, we can have extension lines drawn to spot support, resistance or reversal points. A bullish trend will normally extend from the lowest closing low to the highest closing high for a particular move.
A bearish trend will span from the highest closing high to the lowest closing low for a specific move. It is important to have in mind that the Raff Regression channel are drawn using the closing prices, however setting the channel trend lines are done via the intraday highs and lows.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (useClose, barsToCount), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend, support and resistance