Description
The Standard Error Channel is composed of two lines parallel to the Linear Regression Trendline and distanced from it by specified number of standard errors. Upper line is placed above the trendline; lower line, below.
Standard Error Channel analysis can show if prices are cycling higher or lower than equilibrium and if a change in trend might occur.
Input Parameters
| Parameter | Description |
|---|---|
price
|
The price used to calculate the Standard Error Channel. |
standard errors
|
The number of standard errors between the Linear Regression Trendline and channel lines. |
full range
|
Defines whether to plot the Standard Error Channel for the whole chart or for the specified number of last bars only. |
length
|
The number of last bars to calculate the Standard Error Channel for if full range input is set to "No".
|
Plots
| Plot | Description |
|---|---|
UpperBand
|
The upper border of the Standard Error Channel. |
MiddleBand
|
The Linear Regression Trendline. |
LowerBand
|
The lower border of the Standard Error Channel. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.