Diagonal Chanel Based Dimension Of Support and Resistance

Im not doing a great job at keeping the thread posts organised, but well... after all I just shared my idea and described it as good as I could. And I`d be glad to see ideas based around either the usage or implementation of the concept from other traders
In the end we would all get something valuable for technical analysis.

we can start the chart

1 day
2 insert, channels, linear regression
3 from the up day to last day


to complete it
1 insert, channels, standard deviation red line
2 the same firts day and last day

and last you put your lines

eurusd

1 day
2 insert, channels, linear regression
3 from the up day to last day


to complete it
1 insert, channels, standard deviation red line
2 the same firts day and last day

eurusd

we can check it on H4


CHANNELS

insert, channels, linear regression
insert, channels, standard deviation red line

ALSO WE CAN MAKE MINI CHANNELS


miniCHANNELS

insert, channels, linear regression
insert, channels, standard deviation red line

TRADE

Thanks allot for your idea with lin reg and standard dev channels !)))

USDJPY example with a few tips :
2-5 candle stick tails in a row either ascending or descending at an angle show us clue of the current currency pairs structure angle.
Basically another proof of diagonal price structure in OHLC charts.
Once again the strongest lines could be interpreted as turncoat s/r.

Anyway back to USDJPY interpreting the idea of Juan007
We could draw the Linear Regression channel as shown on the first screenshot or like on the second, but definitely not like on the third. Why not like on the third? Because we don't have clearly visible correlation between some lows of the candles , on screenshot 1 and 2 however such thing is present.
The more points of correlation between either lows or highs at same or pretty similar angles is the better!

When I applied both versions of the linear regression channels as seen above on the screenshots 1 and 2 at the same time I noticed something strange.
The middle neutral 0 polarity line became a descending expanding wedge, which the price in fact seems to respect :O
Now perhaps someone with more experience could explain such phenomena, but at the moment I don't really have allot of time to backtest it (two lin regs at the same time - two due to 2 different most noticeable angles of highs and lows after each other. Also since its a downtrend, I was mainly looking for correlation between lows, and confirmation of such angled trend lines to act as a turncoat)

Moving in to the USDJPY diagonal r/s in a channel analysis by starting with a lin reg.
1)I applied the linreg channel
2)Choosing the same starting and ending point I have applied a standard deviation channel, however just to fine tune it I have changed its deviation in its parameters to 0.75 from standart 1.00. Once again I was focusing mainly on trying to capture as many lows as possible in the same angle trend line. As seen in screnshot 1.
3)Next I trace any line of the channel with a manual trend line, set it to dashed and check the option Ray. After wards I drag them to the top left part of the screen, and place them over our channel lines for confirmation. Where I am again seeking correlation with highs or lows (as seen In small dashed circles).
4) Once that is done, I simply leave the mid section lines in the positive and negative zones of our channel (due to the fractal structure our main Chanel divides in to other channels)

In theory you could even draw those diagonal r/s lines across all the chart.
However on the current example I have only drawn ascending angle trend lines (from left bottom corner to top right corner).
Now with the help of the lowest trend line, I found new crowdness of correlation points near the lowest trend line. Focusing only on the lows for now.
Based on that lowest line, I have create a near linear regression channel (in fatter blue) and adjusted it to correlate with the lowest line, from doing so I achieved the required coordinates (start/end date) and than I created a standard deviation 1.00 channel from them.
I have also made the existing trend lines which happened to be on/below or really close to my new linreg and standard dev channels fat black. A huge break of the second fat black trend line(bottom up) only proves that. Im also changing the most important trendlines to normal lines instead of dashed. Basically that's diagonal turncoat zones of either supply or demand.
The final adjustment I make is making one trendline fatter (from which a 38.2 recent fibb retracement happened). And when you look at the entire picture the chart is showing in global now, you see clear to eye ratio balance between each fat line.

Hello,

What is the trigger signal and exit, stop-loss point?

Hi, at the current phase its more about understanding and seeing the diagonal structure of the market.
However already you can trade depending on the situation as - trading on the bounce off or break out of the middle zone (neutral polarity), buying in negative polarity lowest zone (kind off like oversold/demand/support) and the opposite for positive polarity (upper zone).
Im looking forward to other traders each contributing to this idea
Just like above, Joshua007 shared his idea which made my life also easier even though Im in a way as I believe a founder of this conception (realised and found it out myself even though someone else could have already done something similar... not that I know of)

Application of diagonal s/d zones ))

Whoa I have just accidentally discovered the author of an extremely similar looking methodology - http://www.andrews-lines.com/

Greetings!