Free Forex Indicators (MT4), Trend Following Indicators

Linear Regression Channel

Linear Regression Channel plots the dynamic support and resistance levels with a set of trendline slopes. These levels are plotted automatically so that its users don’t have to bother with everyday artwork hassles at the trading chart. Intraday Forex traders along with the scalpers are widely applying this amazing tool to their daily Forex trading charts for trading perfections.

This indicator works at any timeframe chart and can be applied to trade all kind of Forex currency pairs available at MT4 terminal. Its simplicity of use and easy chart reading offers extra advantages to newbie traders.

Linear Regression Channel Overview

After the installation of the indicator at your Forex MT4 platform, your chart will appear as the following image:

Linear Regression Channel

This indicator plots a set of 7 trendline slopes to create a trendline channel as well as the dynamic support and resistance levels altogether. Price gets rejected from upper channels and heading to downwards is considered as the selling opportunity targeting the lowest regression channel to be hit. On the other hand, the price is supported by the lower channels and moving upwards is simply reflected as the buying opportunity. In such case, the target will be the top regression channel level.

Linear Regression Channel: Buy Parameters

Linear Regression Channel Buying
  • Price is supported by the lower Regression Channel
  • A bullish bar forms which validate the current bullish move
  • Buy triggers once above conditions are met
  • Set stop loss below the current support level
  • Take profit/exit long once price hits the top Regression Channel

Read It: Best Best Forex Strategy Ever

Linear Regression Channel: Sell Parameters

Linear Regression Channel Selling
  • Price is resisted by the upper Regression Channel
  • A bearish bar forms which validate the current bearish move
  • Sell triggers once the above conditions are met
  • Set stop loss above the current resistance level
  • Take profit/exit short once price hits the lowest Regression Channel

I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

2 thoughts on “Linear Regression Channel”

Leave a Comment

About Trend Following System

Trend Following System's goal is to share as many Forex trading systems, strategies as possible to the retail traders so that you can make real money.

Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.
RoboForex Welcome Bonus