Linear Regression channel
Linear regression channel consists of six parallel lines that are equally distant upwards and downwards from the trend line of the linear regression. The distance between the channel borders and the regression line is equal to the deviation of the maximum close price from the regression line. Since the Linear regression channel is a channel of price fluctuations, the lower line of the channel is the support and the upper line of the channel is the resistance.
Opening a long position. When the channel is tilted upwards and the price is near the lower internal band, you should open a long position. Pay special attention to the moments when the price is between the internal and external band.
Opening a short position. When the linear regression channel is tilted downwards and the price is near the upper internal band, you should open a short position. In this case you should also watch the price to break through the internal band while staying within the range from the internal to the external band.