Quite interesting indicator, isn't it? | Forex Factory

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Quite interesting indicator, isn't it?

  • #1
  • First Post: May 9, 2008 11:54am May 9, 2008 11:54am
I developed an indicator named RegressionChannel some time ago, and for last days it works really well for NZDUSD on 4 hours. See attached image. It works excellent on flat and not as good on trends.


http://www.forextester.com/files/MkFiles/indicator.gif

Though, sometimes it works on trends too

http://www.forextester.com/files/MkFiles/indicator1.gif
Forex Tester Software
  • #2
  • May 9, 2008 12:38pm May 9, 2008 12:38pm
yooou gonna post it?
  • #3
  • May 9, 2008 12:45pm May 9, 2008 12:45pm
Looks alot like the Keltner Channels.
  • #4
  • May 9, 2008 4:09pm May 9, 2008 4:09pm
Quoting GulfCoastPip
Looks alot like the Keltner Channels.
It is very different from Keltner channels, based on linear regression. Here it is indicator:

RegressionBands.ex4

I used parameter Period = 64 for NZDUSD
Forex Tester Software
  • #5
  • May 9, 2008 9:22pm May 9, 2008 9:22pm
Interesting...i was hoping to find some code, but you didn't post it...

Looks like a time series forecast with some measure of variance around it. Only problem is that you can't predict the breakout. I'd be interested to know what you used for the bands.
  • #6
  • May 9, 2008 10:43pm May 9, 2008 10:43pm
hmmm just a small suggestion

isn't the general rule for using the upper lower band indicator is to buy when price bounces up from the lower band to the neutral line and vice versa for sell?

that way you can win with about the same winning percentage on both market tendencies.
  • #7
  • May 9, 2008 10:53pm May 9, 2008 10:53pm
Quoting howdytest
Interesting...i was hoping to find some code, but you didn't post it...

Looks like a time series forecast with some measure of variance around it. Only problem is that you can't predict the breakout. I'd be interested to know what you used for the bands.
You do not need to predict breakout, you just need to sell when price touches upper band, and buy when it touches lower band. I used linear regression channel to build the bands. Just imagine that you build a channed with predefined length from the last bar to N previous bars (on every bar). And three channel points will give you upper middle and lower bands.

Here it is the code:

Source code
Forex Tester Software
  • #8
  • May 10, 2008 1:32am May 10, 2008 1:32am
It kinda looks like bollinger bands.
overbought...you sell...it goes up....hits sl...goes forcefully down!
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  • #9
  • May 10, 2008 10:44am May 10, 2008 10:44am
Quoting Oksana17
It kinda looks like bollinger bands.
overbought...you sell...it goes up....hits sl...goes forcefully down!
Bollinger bands and Keltner does not give such a nice channel on flat. And there is no stops, if you sell you should close your trade on lower band, if buy - on upper band. Or stops should be more than channel height, but it gives better results without stop losses.
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  • #10
  • May 10, 2008 2:07pm May 10, 2008 2:07pm
Quoting Terranin
Bollinger bands and Keltner does not give such a nice channel on flat. And there is no stops, if you sell you should close your trade on lower band, if buy - on upper band. Or stops should be more than channel height, but it gives better results without stop losses.
Wow, I never knew that. Thanks!
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  • #11
  • Last Post: May 11, 2008 11:47am May 11, 2008 11:47am
Quoting Gift_Art
hmmm just a small suggestion

isn't the general rule for using the upper lower band indicator is to buy when price bounces up from the lower band to the neutral line and vice versa for sell?

that way you can win with about the same winning percentage on both market tendencies.
General rule is to buy on lower band and close it on upper band, and immidiately sell on upper band to close it on lower band.
Forex Tester Software
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