StockFetcher Forums · General Discussion · Linear Regression Channels on ThinkorSwim/Prophet<< >>Post Follow-up
einok
msg #85990
Ignore einok
1/11/2010 11:28:07 PM

All I see is linear regression 100% and 50%. I have seen others use Draw Linear Regression Channel(60) for example. Is this a 60 bar or 60% channel? How do I set this up on prophet or thinkorswim

What advantages have you all found with differences between the 100%, 50%, etc.? What systems have you found to be profitable and in what time frame(s)?

Thanks,
Erik

gmg733
619 posts
msg #86007
Ignore gmg733
1/12/2010 10:08:20 AM

I don't know how SoS works, but I use LRC(60) in my scans. It is still about support and resistance. If there is a positive slope channel, stock is moving up and the price is around the lower channel line, then look at weekly and daily charts for support and resistance. It is just another tool in the belt.

I know M4M uses regression channels or did. Search the forums for TRO discussion on RSI(2) and linear regression. It will help shed some light on some trades that put odds in your favor.



karennma
6,827 posts
msg #86012
Ignore karennma
1/12/2010 10:37:17 AM

ewhiteman
- ewhiteman 1/11/2010 11:28:07 PM
Is this a 60 bar or 60% channel? How do I set this up on prophet or thinkorswim
What advantages have you all found with differences between the 100%, 50%, etc.?
==============================================================

I"ve never used 60 LRC, and I don't know why anyone would.
I've always used 100 and 50.
On PROPHET ...
- Right click your chart
- Left click studies
- Left click apply studies
- Scroll down to the studies you want to apply
- Double click LRCHannel 100%
- Double click LRC 50%
- Apply, click okay

:>)


karennma
6,827 posts
msg #86017
Ignore karennma
modified
1/12/2010 11:45:35 AM

The other thing is, Erik, those LRCs are only guidelines. They don't "tell you" exact bottoms or tops.
For example, I've been watching SHW today.
5 minutes ago, when SHW was $59.99, it was at the bottom LRC.
SHW is now $59.89... the price is STILL at the bottom LRC.
In other words, as the price increases or declines, the LRC adjusts itself to the price.
Now, as I'm typing, SHW is @ $59.88 ... at the bottom LRC ...
same place it was 5 minutes ago when it was $59.99.
I could've bought what I thought was a "bottoms @ $59.99, to only lose another ....
OMG!! 20 cents!!
SHW is now $59.78 as I type .... everytime the price changes the LRC goes lower.

Just BE AWARE!

Edit:
now SHW is $59.71 ... the price NEVER moves BELOW the LRC ....

Edit:
okay! 3 minutes later ...
$59.78 ... that's it! "Bouncing off" the low.
:>)


karennma
6,827 posts
msg #86018
Ignore karennma
modified
1/12/2010 11:55:20 AM

Erik:
If you don't understand the above, just set your LRCs and WATCH ...
RIMM's a good one to try ...


dickysofa
63 posts
msg #86051
Ignore dickysofa
1/12/2010 6:27:19 PM

Good call Karen, RIMM is a very good example for LRC's.

chetron
2,817 posts
msg #86052
Ignore chetron
1/12/2010 6:39:25 PM

K,
IN STATEDGYDESK, THE LRC IS DEFAULTED TO THE CANDLES OPEN, THOUGH I CAN CHOOSE OTHERS, I DON'T BECAUSE THE OPEN IS THE ONLY CANDLE POINT THAT DOESN'T CHANGE AS THE CANDLE IS FORMING. MAYBE YOU CAN SET YOUR LRC TO THE OPEN.


HTH

gmg733
619 posts
msg #86055
Ignore gmg733
1/12/2010 7:00:06 PM

I have used LRC(50) before too, I am just using (60) right now for daily charts.

I use LRC(100) on the intraday 30 minute charts.

How do you use the LRC? The LRC in itself does not mean much. You need confirmation of a movey up. For instance, if RSI(2) is low, MACD is heading up to 0 and the stock is/was around the lower channel, I put it on the watch list. If the stock close above/below the EMA(5) on the daily, I take a shot.

karennma
6,827 posts
msg #86063
Ignore karennma
1/12/2010 7:23:29 PM

chetron
- chetron 1/12/2010 6:39:25 PM
K,
IN STATEDGYDESK, THE LRC IS DEFAULTED TO THE CANDLES OPEN
========================================================

Chetron:
I'm using the ProphetNet version of ToS charts. I just assumed the LRC defaulted to the opening price.
BTW ... I don't use the candles anymore ... I use the "line" charts.

chetron
2,817 posts
msg #86064
Ignore chetron
1/12/2010 7:26:14 PM

my tos charts default to the close, but just because you use line charts maybe you can still select the open, or others, because they still exitst.


hth

StockFetcher Forums · General Discussion · Linear Regression Channels on ThinkorSwim/Prophet<< >>Post Follow-up

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