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 Daily and Standard Regression Channels were discussed in our Indicator Spotlight newsletter (with video).
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 Regression Channel Daily DataSeries:
You may access the following public DataSeries via the NinjaTrader Strategy Builder:
- Normalized slope: This is an output which returns the slope in synthetic degrees. One may normalize the slope by dividing it by the square root of the average true range and then applying the arctangent.
- NormalizedChannelWidth: When you apply this series, it will return a normalized channel width around the regression line, i.e. 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
You may use the Daily Regression Channel to identify trend entries with setups from momentum oscillators or 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. You may also consider using a higher timeframe Daily Regression Channel chart together with the Opening Range or the Donchian Channel.
In our Indicator Spotlight we have additional information on how to combine the Opening Range Breakout with Daily Pivot levels. You may also review posts discussing Squeeze setups, the Donchian Channel and the Traders Dynamic Index and validating setups using Relative Volume.
Finally, managing open profits may be done by using the ATR Trailing Stop, alternatively the Wilder Volatility Stop. Other trailing stop indicators are available from the Trailing Stops category.
The Regression Channel Daily indicator is available for NinjaTrader 8.
