Linear Regression Fan

Linear Regression Fan anchors a fan of equidistant lines to a least-squares linear regression fit of price, spacing them by the fit's root-mean-square deviation multiplied by an adjustable factor. The rays originate at the regression's first point and extend to its most recent, a fit-driven relative of the classical fan principle, giving a trend graded internal levels instead of a single midline.

How to Trade the Linear Regression Fan?

• Rays as sloped support and resistance: the equidistant lines mark graded reaction levels inside the move, from the fit outward.
• Anchor at a pivot: place the Left Coordinate on the swing point that began the move, so the fit starts there. The fan then grades everything that followed.
• Extremity breaks: when price escapes the outermost lines, the measure rule of broadening wedges can be applied to project take-profit and stop-loss levels.

Mult trades coverage for precision: a larger multiplier widens the fan to contain more of the action, while a smaller one tightens it so breaks register earlier. Lines Per Side adds intermediate rays when a denser ladder of levels helps.

Linear Regression Fan Settings

• Left Coordinate / Right Coordinate: the start and end of the regression window, picked on the chart; place the left point on the pivot you care about.
• Mult: multiplies the RMSD spacing, widening or narrowing the fan.
• Lines Per Side: how many rays are drawn on each side of the fit.
• Src: the price source the regression runs on.

Frequently Asked Questions

How do I pick the anchor point?

How does it compare with a plain regression tool?

How can I access the Linear Regression Fan?