Regression Trend Channel Entry/Exit AlertsFree Telegram Trading Community t.me
📊 Regression Channel Entry/Exit Alerts
A simple yet powerful indicator that tells you exactly when price enters or exits a regression channel, with clear buy/sell signals.
🎯 What Does It Do?
This indicator draws a regression channel (like a dynamic support/resistance zone) and automatically alerts you when price makes significant moves relative to this channel.
🔑 Key Concepts Made Simple
The Channel
Middle Line: The "fair price" or average over recent bars
Upper Band: Overbought zone / resistance
Lower Band: Oversold zone / support
The Signals
The indicator tracks where price has been and alerts you when:
Price enters the channel (from outside) → Potential trade entry
Price exits the channel (from inside) → Potential trend change
📈 Signal Guide
Buy Signals (Go Long)
🔼 Green Triangle: Price enters channel from BELOW
🔵 Blue Circle: Price breaks out BELOW the channel (potential reversal up)
Sell Signals (Go Short)
🔽 Red Triangle: Price enters channel from ABOVE
🟠 Orange Circle: Price breaks out ABOVE the channel (potential reversal down)
💡 How to Use It
Simple Trading Strategy
In an Uptrend (channel sloping up):
Wait for price to fall back INTO the channel → BUY
If price breaks ABOVE channel → Consider SELLING (may be overextended)
In a Downtrend (channel sloping down):
Wait for price to bounce back INTO the channel → SELL
If price breaks BELOW channel → Consider BUYING (may be oversold)
Visual Cues
Blue shaded area: Upper half of channel (resistance zone)
Red shaded area: Lower half of channel (support zone)
Numbers on chart: Pearson's R shows trend strength (closer to 1 or -1 = stronger trend)
⚙️ Simple Settings
Setting What It Does Typical Value
LinReg Length How many bars to look back 100
Upper/Lower Deviation How wide the channel is 2.0
Lookback Period How many bars to check for entry/exit 5
🎨 Alert Examples
text
"Price has re-entered the regression channel from below - BUY signal"
→ Price was below channel for 5 bars, now moved back in - potential bounce up
"Price has exited the regression channel to the upside - SELL signal"
→ Price broke above channel - might be overbought, potential pullback
✅ Best Practices
Use on higher timeframes (1h, 4h, daily) for more reliable signals
Combine with trend direction - don't fight the main trend
Wait for candle close before acting on signals
Adjust channel width in volatile markets (wider channel = 2.5-3.0)
❌ Common Mistakes to Avoid
Don't take every signal - wait for confluence with trend
Don't use in very choppy/sideways markets
Don't set lookback period too low (1-2) or you'll get false signals
📊 Quick Reference
Signal Shape Color Meaning
Entry Buy Triangle Up Green Price dipped into channel from below
Entry Sell Triangle Down Red Price rallied into channel from above
Exit Buy Circle Blue Price broke below channel
Exit Sell Circle Orange Price broke above channel
🔧 Pro Tips
For trend traders: Focus on channel RE-ENTRY signals (triangles)
For counter-trend traders: Focus on channel EXIT signals (circles)
For scalpers: Use shorter length (20-50) and lookback (2-3)
For swing traders: Use longer length (100-200) and lookback (5-8)
Note: This indicator repaints (updates as new bars form) since it uses future data to calculate the regression line. Always confirm signals with price action and other indicators.
Indicatore Pine Script®
