Recruitment of participants Regression channel is a technical Indicator with overbought and oversold

Regression channel is a technical Indicator with overbought and oversold





A regression channel is a technical analysis tool that encompasses most of the price action between two given points.

Since the channel incorporates most of the price action, when the price nears the top or bottom of the channel, it indicates that the price may meet resistance or support.

Regression channels are not meant to forecast exact highs or lows, rather they simply notify a trader that the price has entered an area where the price has tended to move higher or lower from in the past.

The trader can then use other methods to find an exact entry point and stop loss level.

Regression channels also help with establishing profet For example, if the price bounces off the bottom of a particular channel, it could rally toward the top of the channel.

How to Draw A Regression Channel
Like a trendline, a regression channel should be drawn over an area that encompasses at least two swing lows, and/or two swing highs