DislikedReally interesting stuff with the Raff linear regression channel setups, thank you for sharing. Two setups I saw today on EURUSD and AUDCAD, both longs, EURUSD had confluence of Daily 10EMA and AUDCAD had confluence of Daily 50 EMA. Are these setups only for support/ going long or can they work for resistance/ going short? {image} {image} {image} {image}Ignored
If Choros is BULLISH, for example, we will expect the price to return to the lower boundary of the channel. The interest is to obtain a convergence between this boundary and Choros's bullish moving averages.
Small timeframes are very sensitive to deviations from equilibrium; they react to the boundaries, especially when an obstacle is present. I really like my two channels: 100 and 30, with a 2.1 deviation on the volatile DAX.
These channels recalculate themselves at every close, which is very important: a regression channel absolutely must adapt to the immediate price situation; otherwise, it's better to draw a chartist channel (which I don't like very much).
We can also do counter-trend trades on the channel boundaries, but a favorable context is needed, as I posted on the thread.
Dax only.
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