Logarithmic price scale with one and two standard deviation boundaries
The price has already dropped to the support line of the inner channel (in light blue), which is at one standard deviation. If this support line is also broken, the next support level is the outer channel (in yellow), which is at two standard deviations. (Logarithmic price axis, channel starting from 2008)
If the midline of the linear regression channel is broken, the price will continue to decline until it reaches the support line of the inner channel (in light blue), which is at one standard deviation. In the less likely event that this support line is also broken, we have the support line of the outer channel (in yellow), which is at two standard...
he degree to which a physical object persists in its current motion is measured by the metric momentum. In physics, the formula for calculating momentum is the product of an object's mass ("its weight") and its velocity. The greater either of these values, the larger the momentum of the object, making it harder to stop its motion. Intuitively, we understand that...
A linear regression channel spanning over a dozen years doesn’t lie — the graph depicts the S&P 500 index using candlesticks in monthly intervals on a logarithmic price scale. We are entering a danger zone in the coming months! Naturally, the earlier the drop, the less painful it will be.
Since the beginning of 2021, Tesla has been restricted by a resistance zone for upward movement, resulting in the price fluctuating within a range of monthly candles. However, the linear regression channel, which has been in place since 2011, will enforce a price increase within a few months.
You can see here that a linear regression channel that starts as early as September 2022 explains why Micron shares are now rising.
Linear regression with standard deviations 1.5 + 2.5 - have we reached the low point from which Intel starts to rise?
History does not repeat itself, but it turns out that quite a few assets in the capital market have a tendency to typical behavior patterns.
Does crossing the 3 standard deviation boundary line indicate a trend reversal EURUSD?
Conventional technical analysis is based on the combination of two methods for predicting price movements: one method attempts to "clear" them of noise in order to track their direction, and the second method attempts to predict changes by detecting obstacles in its path and evaluating the momentum of a current direction. In addition to these two methods, it is...
When it comes to currency trading (forex) I have confidence that my method can find with high probability the current channel (within months) of the price. On the other hand, when it comes to indices, it is difficult for me to be unequivocal when I outline the "natural" channel - the channel in which the index "runs" over the years. Nevertheless, I bring here the...
When it comes to currency trading (forex) I have confidence that my method can find with high probability the current channel (within months) of the price. On the other hand, when it comes to indices, it is difficult for me to be unequivocal when I outline the "natural" channel - the channel in which the index "runs" over the years. Nevertheless, I bring here the...
I don't have much to write, the picture speaks for itself. As you can see the analysis is based on a Hull moving average and a parallel channel
The euro is beginning to lose its height relative to sterling - it has also succumbed in this battle to the general trend of its weakening relative to major currencies. Its future is not bright considering the expected energy shortage in winter.
"Flag" for a race up - maybe a slow race Based on Hull moving average and parallel channel
Any meeting with the channel ceiling can be the decisive moment