Bruce,

I finally had a chance to watch Julia’s webinar on R-Squared and Standard Deviation with Lin Reg channels and that has inspired me to try to do something I originally wanted to do but I though it will never be possible, but with SF and the power of realcode who knows what is or is not possible so it’s worth asking.

I just shared a chart under In Channel. As you can see I currently use a Band around a 22 day Lin Reg Slop with a 1 ATR above and below it. I use this in the retracement part of the Wave strategy. I look for more than 80% of closes to be within the bands since the 63 day high and a cross up through the upper band is the start of the next wave up.

There are few problems with this. First is the 22 day time frame on the Lin Reg Slop. The retracement could very well be shorter or much longer than 22 days and this is true no matter what time frame I use. The 2^nd issue I have with this is that since this is plotting the slop of the Lin Reg and it keeps curving as the slop of the 22 day Lin Reg changes, the breakout sometimes comes late since Lin Reg has gradually turned back up with price or sometimes you don’t even get a Breakout.

Lastly, bring up WMG please. Stock hit a high on 6/1/2009 and started retracing and it broke out on 6/26/2009, but you only had 33% of the closes within the bands and that is because it took some time for the 22 day Lin Reg Slop to turn back down. Instead if you plot a Lin Reg Channel with a 1 Standard Deviation from the high of 6/1 to the lowest low hit since 6/1 which was on 6/24 you can see that 100% of the closes were within the upper and lower channels.

I think all of these issues can be solved with a Lin Reg Channel. To avoid the time frame problem is it possible for us to plot a Lin Reg Ch from the day of the last 63 day high to the day that price hit the lowest level since that high. So if the 63 day high was 30 days ago and the low since then was 3 days ago it will plot a Lin Reg from the high to the low and it will be a 27 day Lin Reg, or if the high was 40 days ago and the low was today it will be a 40 day Lin Reg that starts from the high 40 days ago to today. And we plot an extension that of course plots downward in the same angle.

The channels above and below it we can use ATR or Standard Deviation it makes no difference to me at all.

And since the extensions will continue plotting in the same slop downward and they are not curving as the slop of the 22 day Lin Reg that I am using now changes 1) you will always get a breakout the moment stock resumes its uptrend and 2) breakout comes in most cases a lot earlier and much closer to the stop price which changes the risk to reward ratio to my favor drastically.

So plotting a Lin Reg from the last 63 day high to the lowest low reached since the high with extensions that extend no longer than 63 bars and the distance of the bands can be by ATR or Standard Deviation.

Please let me if this is possible.

Many thanks

Thanks 

That should make this strategy a lot more accurate?

Bruce,

I only have one setting that I can adjust in the indicator edit box and that is width which as you say controls the distance from the center line to the upper and lower channel.

I just shared a chart under In Channel. Take a look at KLIC please. On 6/1/2009 it hit a 63 day high and the lowest low it hit since was on 7/10/2009. So I drew a Lin Reg Ch from 6/1 to 7/10 with a 1 Standard Deviation and as you can see 100% of the closes are within the channel. I have your indicator in the bottom pane and the value of the indicator is about 35%.

I am on OHLC plot but it still draws 1 line.

I changed my plot to OHLC and then Add Indicator, Create in RealCode, I deleted everything and then I copied and pasted your realcode above. The indicator plots in a new pane so I drag and drop it in the Price pane, click on Overlay and set the scale to be the same as Price.

Am I doing anything wrong because I still get one line?

I did create 3 other indicators running the out put of the Custom Code Block to Bar Low, Bar High and Bar Open and now I get the upper and Lower channels.

Is the Upper channel technically plotting a Lin Reg on the Highs and Lower Ch a Lin Reg on the Lows?

Ok Thanks 

Bruce you are amazing thank you

After creating the indicator (Lets call it Auto Lin Reg) in your Tuesday, August 25, 2009 12:21:52 PM post I drag and drop it to price pane same scale.
 
Then I copy and paste the Auto LIn Reg 2 more times and in one block diagram I drag the out put of the RealCode Indicator block to a empty area and let go, the only options I get is Select Block & Connect, Recent and Create Code Block, I don't get LInk Fom Another Tool. 

So far I've been clicking on Select Block and Connect, Bar High and then I connect the Bar high to Numeric Plot. In the other one I do the Bar Low. 

I did this on two machines and the same thing happen they get disconnected after restart of SF.

Did I do anything wrong?

Bruce

I might be loosing it but no matter what I do doesn’t work and I was playing with this until 3 in the morning last nigh.

I know I have been using Blocks for 2 years but how do create a Block diagram based indicator that is connected to the real code?

I right clicked on an empty part of the price pane, Create New, Indicator Block Diagram. When the Block diagram comes up I take Bar Chart Price History to Bar High and I still don't get Link From another Tool.

Can you give me the steps please?

Thanks