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six

Linear Regression Channels

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Hello.

Is there anyone who can help me with the number of bars necessary for the calculation of Linear Regression Channels for a daily chart and for a 5 - minute chart. Is there a figure that is typically used for these charts.

 

Thank you, --six

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I'm no expert on linear regression channels, but a guy that I respect uses a 30 day channel. I've heard that using statistics to describe a set of data, 30 numbers are a minimum to have a sample that is beyond chance.

 

I think you could use 30 on a daily or 5 minute chart. You could go with a higher number, but I wouldn't go any lower.

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I'm no expert on linear regression channels, but a guy that I respect uses a 30 day channel. I've heard that using statistics to describe a set of data, 30 numbers are a minimum to have a sample that is beyond chance.

 

I think you could use 30 on a daily or 5 minute chart. You could go with a higher number, but I wouldn't go any lower.

Thanks, ericmoles, for your response. Your comments regarding statistics make a lot of sense and are helpful. You got me to think about the number of data required to create a relevant, reliable sample. I noticed that the default on my software program is set to 38 which is in line with what you stated.

 

--six

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No problem. I've also heard that if 30 is a minimum, 100 would be a better sample size in a data set.

 

I'd say experiment with varying lengths above 30 and see what seems to fit more often.

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