Tutorial 49 | Creating a linear regression channel

Welcome to tutorial 49 in this series of tutorials designed to teach TradeStation EasyLanguage programming skills. This tutorial was created using TradeStation 8.7 and builds upon the work done in tutorial 48.

A linear regression line with parallel channels drawn 2 standard deviations above and below the line. This chart is a daily GBPUSD currency chart.

In this three video tutorial I use the code created in tutorial 48 that created a line using linear regression that best fits chart data. The linear regression method used in this tutorial uses the least squares method to calculate the slope and y-intercept of this line.

In this tutorial I also calculate the standard deviation of the right most end of the regression line in order to create a channel made up of two parallel lines above and below the linear regression line. These lines are drawn a user input multiple of standard deviations above and below the original linear regression line.

In this tutorial I explain how to modify the program developed in tutorial 48 to calculate the standard deviation of the linear regression line's end point.

Click here to download a copy of the program created in this tutorial for $19.95:

I then demonstrate three different options for displaying the channel:

1. In the first option the channel is always moved to the end of the chart to apply to the last NumBars bars.

2. A new channel is drawn every time a new bar is printed.

3. The channel is drawn when the show me study is first applied to the chart and doesn't move.

Click here to download a copy of the program created in this tutorial for $19.95:

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TO THE BEST OF BILLY FIRE LLC'S KNOWLEDGE, ALL OF THE INFORMATION ON THIS PAGE IS CORRECT, AND IT IS PROVIDED IN THE HOPE THAT IT WILL BE USEFUL. HOWEVER, BILLY FIRE LLC ASSUMES NO LIABILITY FOR ANY DAMAGES, DIRECT OR OTHERWISE, RESULTING FROM THE USE OF THIS INFORMATION AND/OR PROGRAM(S) DESCRIBED, AND NO WARRANTY IS MADE REGARDING ITS ACCURACY OR COMPLETENESS. USE OF THIS INFORMATION AND/OR PROGRAMS DESCRIBED IS AT YOUR OWN RISK.

ANY EASYLANGUAGE OR POWERLANGUAGE TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS (AND PARTS THEREOF) AND ASSOCIATED TECHNIQUES REFERRED TO, INCLUDED IN OR ATTACHED TO THIS TUTORIAL OR PROGRAM DESCRIPTION ARE EXAMPLES ONLY, AND HAVE BEEN INCLUDED SOLELY FOR EDUCATIONAL PURPOSES. BILLY FIRE LLC. DOES NOT RECOMMEND THAT YOU USE ANY SUCH TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS (OR ANY PARTS THEREOF) OR TECHNIQUES. THE USE OF ANY SUCH TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS AND TECHNIQUES DOES NOT GUARANTEE THAT YOU WILL MAKE PROFITS, INCREASE PROFITS, OR MINIMIZE LOSSES.

Tutorial 49 Video 1 - Modifying tutorial 48 to calculate the standard deviation of the end of the linear regression line

Click here to download a copy of the program created in this tutorial for $19.95:

Tutorial 49 Video 2

Tutorial 49 Video 3

Click here to download a copy of the program created in this tutorial for $19.95:

If you see any errors in this tutorial - or we have not made something clear, we would be most grateful if you could please let us know. E-mail us at: tutorials@markplex.com. Also, let us know if you have any ideas for new tutorials.

EasyLanguage is a programming language that is part of the TradeStation trading platform. It can be used to write programs to help in the technical analysis and trading of foreign exchange (forex or FX), commodities (e.g. the Dow e-mini, S&P e-mini etc), options, and stocks.