{"product_id":"v16-c11-089raff-pdf","title":"V.16:11 (537-542): Enhancing the Raff Regression Channel by Robert B. McKinnon","description":"A market follows its primary trend in a zigzag form. The trend direction is easy to see; the real challenge lies in identifying the minor trends.\u003cbr\u003e\u003cbr\u003ePrice channels are a technique\nused to discover the outer\nboundaries of the markets action\nconcerning a trend. One\nsimple method is to draw a\ntrendline along the lows and a\nparallel line along the highs\nand project both lines forward.\nA more scientific method is\nthe regression channel, which\nwas introduced by Gilbert Raff\nin the October 1991 STOCKS \u0026amp;\nCOMMODITIES. The regression channel defines the primary\ntrend by using a linear regression line with a lookback period\nselected by the user. Next, parallel channel lines are plotted\nabove and below the extreme price excursion, thus defining\nthe outer parallel channel lines. According to Raff, this\ntechnique offers a good deal of information regarding the\ntechnical picture.\u003cbr\u003e\u003cbr\u003ePREDICTIVE ACTION\u003cbr\u003e\u003cbr\u003eIn his book, Trading The Regression Channel, Gilbert Raff\nstates that if we have drawn our channel correctly,\u003cbr\u003e\u003cbr\u003e [W]ell see a remarkable process unfolding. The Regression Channel\nTop will be the precise point at which the high days in a trend hit\nresistance and turn down, and the low days will find support at the\nRegression Channel Bottom and turn up. Finally, a day will arrive when\nprice exceeds the Regression Channel Range and the trend is over.\u003cbr\u003e\u003cbr\u003eLater, he states:\u003cbr\u003e\u003cbr\u003eThe most powerful single requirement of a Regression Channel is that it exhibits predictive action. This means that it encompasses turns in the market that have already occurred and that it continues to do so in the future.\u003cbr\u003e\u003cbr\u003eClearly, Raff believes that the most important trait of the\nregression channel is that it can predict future price movement. Based on personal experience, the resistance, support\nand attraction characteristics of a properly drawn channel can\nprovide strong price movement clues that can help you decide\nwhat to do in your trading. However, it is crucial to develop\nthe ability to correctly place regression channels so they\nproperly define the market consensus and provide the neces-sary\npredictive action.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133837144433,"sku":"\\V16\\C11\\089RAFF.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_7b106c15-d358-4022-99cb-c74ea6bd52f9.jpg?v=1739653779","url":"https:\/\/shop.traders.com\/products\/v16-c11-089raff-pdf","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}