π‘ Linear Regression Channels and ZigZag Points π‘
β’ The linear regression channels are recalculated and reset each time the price moves beyond the expected boundaries (bands), ensuring the measurement remains up-to-date with the marketβs real trend.
β’ The marked points (circles) represent extremes (highs and lows) that serve as the basis for drawing the ZigZag and determining where the channels are calculated from.
β’ This dynamic approach allows for better visualization of potential trend changes, as well as areas of overextension or overselling where the price might revert toward the mean.
β How do the channels relate to the ZigZag and the extreme points? β
β’ Whenever a new extreme (high or low) is detected, the indicator not only plots a circle and the ZigZag line connecting that point to the previous one, but also readjusts the potential linear regression channel being drawn from that last extreme.
β’ If, during the following bars, the price remains within the bands, the channel stays active and extends to the current bar.
β’ If at any point the price breaks those bands, the indicator βassumesβ the channel has been invalidated and starts a new one from the bar where the break occurred.
Ctrader Store indicators:
Dynamic Market Structure
Analysis of Turning Points
Fibonacci Linear
Regression Multi-timeframe
Multi-Level Candle Bias
Tracker
Auto Support and
Resistance Trend Lines
All Support and
Resistance Levels
Dynamic Market Structure Analysis of Turning Points
Fibonacci Linear Regression Multi-timeframe
Multi-Level Candle Bias Tracker
Auto Support and Resistance Trend Lines
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