Regression Channel Daily

Daily Regression Channel for NinjaTrader 8

Unlike the standard Regression Channel which is based on data from a fixed lookback period, the Regression Channel Daily is anchored at the start of the session. Accordingly, the Regression Channel Daily is a session indicator with similar properties to the Current Day VWAP.

Indicator Description

The Regression Channel Daily is a session indicator with similar properties to the Current Day VWAP. Unlike the standard Regression Channel which is based on data from a fixed lookback period, the Daily Regression Channel is anchored at the start of the session. Accordingly, the calculation is based on the bars in the defined session (ETH, RTH or custom), continuously increasing until the end of the session. Therefore, the daily channel stabilizes towards the end of the session.

The Regression Channel Daily comes with the following features:

  • Calculated from the last bar shown on the chart, adapting its position accordingly when scrolling backwards on the chart
  • Comes with 2 plot colors, blue for uptrends, red for downtrend
  • The indicator has an option to show trace lines of the channel plot (regression bands) without repainting any prior bars.
  • NOTE: The offset setting “Displayed bars ago” is not available for Regression Channel Daily. It does not make sense to display this for data accumulated over the session

Public DataSeries:

The indicator comes with the following public DataSeries that can be accessed via the strategy builder:

  • Normalized slope: This is an output which returns the slope in synthetic degrees. The slope has been normalized by dividing it by the square root of the average true range and then applying the arctangent.
  • NormalizedChannelWidth – This series returns the normalized channel width around the regression line and may be used as a measure of non-directional volatility.
  • RegressionTrend – The regression trend holds the value + 1 for an up-sloping regression line and -1 for a down-sloping regression line.
  • Market Analyzer Columns: The indicator comes with three separately coded market analyzer columns. They allow for displaying normalized slope, normalized channel width and the regression trend on the market analyzer.

Other library indicators

The Daily Regression Channel can be used to identify trend entries with setups from momentum oscillator or volatility / range breakout indicators. You may for example consider the Acceleration Deceleration, LBR 3/10 Oscillator, the True Strength Index, the Multiple MACD, theProjection Oscillator, or our new and improved version of the RSI indicator. Furthermore, we also have a category for volatility indicators, with among others the Projection Bandwidth and the Squeeze Momentum indicator. In our Indicator Spotlight we have additional information on Squeeze setups, trading approaches for using the Donchian Channel and the Traders Dynamic Index. The Indicator Spotlight also has further details on how to apply the Regression Channel and validating setups using Relative Volume.

Finally, managing open profits may be done by using the ATR Trailing Stop, as explained in this post. Other trailing stop indicators are available from the Trailing Stops category.

The Regression Channel Daily indicator is available for NinjaTrader 8.