## Regression Channel Position Solver

The Regression Channel Position solver analyzes the relative position of price to the Regression Channel lines. The Regression Channel is divided into 6 zones (A-F). 4 zones are inside the channel, and 2 zones are outside the channel. Output Zones for the Long side start above the Upper channel line with Zone A and descend. Output Zones for the Short side start below the Lower channel line with Zone A and ascend. See the examples below for a visual explanation.

### Parameters

#### Channel Parameters

#### Output

### Video Tutorial

This video is from our weekly Workshop on Aug 22nd, 2012.

For more benefit please watch in full screen mode, as this video is recorded in HD.

### Examples

#### Example 1A: The Basics

This demonstrates the basic function of the Regression Channel Position solver, and how Long & Short Output Zones are inverted. When Zone B is set to 1 and price is between the upper quarter line and Upper channel line the Long output is 1. The reverse is true for the Short side, because the Output Zones are inverted. Therefore when price is between the lower quarter line and Lower channel line (Zone B for the Short side) the Short output is 1.

- Add the Regression Channel Position solver
- Set Output Zone A & B to 1
- Set Output Zone C, D, E, & F to 0

As seen in the left chart, when price enters the Long Output Zone B the solver outputs 1 to the Long side. In the right hand chart you will notice that the Zones are reversed. Thus, when price enters the Short Output Zone B the solver outputs 1 to the Short side.

This second part will illustrate using the lower portion of the Output Zones.

- Add the Regression Channel Position solver
- Set Output Zone B, C, & D to 0

As seen in the left chart, when price enters the Long Output Zone E the solver outputs 1 to the Long side. In the right chart, when price enters the Short Output Zone E the solver outputs 1 to the Short side.

#### Example 2: Channel Entry & Exit

In this example we will generate a Long signal when price is near the bottom channel line and the channel is sloping up, also a Short signal when price is near the upper channel line and the channel is sloping down.

- Add the Regression Channel Position solver, and use the setting as shown above
- Add the Indicator Threshold solver
- Set Thresholds A & B to 0.35
- Set Thresholds C & D to -0.35
- Set Long Output: At A to 1
- Set Short Output: At D to 1

Below we see two charts side by side, demonstrating the minimum slope requirement of the Regression Channel for a Long & Short output that the Indicator Threshold provides. Note that the Regression Channel Position solver is not checked for this image.

With the Regression Channel Position solver checked, the charts below show signals when the minimum slope is obtained and price is near one of the outer channel lines.