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Draw regression channel

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Draw regression channel

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On MetaTrader4 (MT4) / MetaTrader5 (MT5), you can draw the linear regression channel based on the ideas of statistics and linear regression. It is made up of 3 lines: the linear regression line, and 2 lines on top and bottom. The line above represents the resistance line and the bottom line represents the support line.

Here we'll take a look at how to draw and set up the linear regression channel in MT4/MT5.

Switch between MT4/MT5 tabs to check the steps for each.

mt4
mt5

Step 1

Click "Insert" in the menu. Hover the pointer over "Channels" and select "Linear Regression".

Select Linear Regression from the menu Select Linear Regression from the menu

In MT4, 5 types of channels are available, including the Andrews' Pitchfork, which is on the "Insert" menu.

  1. Fibonacci

    Fibonacci channel

    Fibonacci channel uses the trendline and creates parallel channel lines using the Fibonacci ratio.

  2. Linear regression

    Linear regression channel

    Draws a center line (regression line) using the close price of each candle, and then draws equally spaced two parallel lines above and below it. The parallel lines pass through the close price farthest from the center line.

  3. Equidistant channel

    Equidistant channel

    Draws two parallel lines. Each line can be moved separately while keeping them parallel.

  1. Standard deviation

    Standard deviation channel

    Draws a center line (regression line) using the close price of each candle, and then draws two parallel lines at a distance of standard deviation from the center line.

  2. Andrews' Pitchfork

    Andrews Pitchfork

    Three parallel lines are drawn using three points: the starting point of the trend and the high and low just after the trend.

Step 2

Click the starting point on the chart and drag it to the end point to create the linear regression channel.

Draw linear regression channel on the chart Draw linear regression channel on the chart

Step 3

If you want to adjust the position of linear regression channel, make sure the white dots are being displayed on the linear regression channel and move each dot as necessary. If you cannot see the white dots, double-click near the linear regression line to display the white dots.

Adjust the linear regression channel position Adjust the linear regression channel position

Number

Descriptions

1

Change the starting point of the linear regression channel.

2

Change the position of the linear regression channel.

3

Change the end point of the linear regression channel.
point Values displayed during drawing a linear regression channel
Values displayed during drawing a linear regression channel Values displayed during drawing a linear regression channel

Values displayed when dragging indicate the numbers of candlesticks and points from the starting point to the end point.

Step 4

To modify the regression channel settings, right-click near the linear regression line and select "Regression Channel properties...".

Modify the linear regression channel settings Modify the linear regression channel settings

Step 5

On the "Properties" window, edit the parameters in the "Common", "Parameters", and "Visualization" tabs and click "OK".

"Common" tab

Common tab of the linear regression channel Common tab of the linear regression channel

Number

Item name

Descriptions

1

Name

Name the linear regression channel.

2

Description

The description can be displayed on the chart when hovering the pointer over the linear regression line.

3

Style

Set the color, line type, and line thickness for the linear regression channel.

4

Draw object as background

Check this box if you want to place the linear regression channel behind the chart.

"Parameters" tab

Parameters tab of the linear regression channel Parameters tab of the linear regression channel

Number

Item name

Descriptions

1

Starting point position

Specify the starting point position by date and time.

2

End point position

Specify the end point position by date and time.

3

Ray

Check this box to extend the linear regression channel to the right.
point Use "Ray" for future analysis

If you check the "Ray" box, the line will be extended beyond its end point. This makes it easier to analyze, as the line will be extended into the future, based on the price movement between the starting point and the end point at a certain point in time.

Ray feature Ray feature

"Visualization" tab

On the "Visualization" tab, you can specify the timeframes to use the linear regression channel with.

Visualization tab of the linear regression channel Visualization tab of the linear regression channel

Step 1

Click "Insert" in the menu. Hover the pointer over "Objects" > "Channels" and select "Regression Channel".

Hover the pointer over Objects and select Regression Channel Hover the pointer over Objects and select Regression Channel

On MT5, five types of channels can be drawn including the Fibonacci channel in the "Fibonacci" menu.

  1. Equidistant channel

    equidistant channel

    Draws two parallel lines. Each line can be moved separately while keeping them parallel.

  2. Standard deviation

    standard deviation channel

    Draws a center line (regression line) using the close price of each candle, and then draws two parallel lines at a distance of standard deviation from the center line.

  3. Linear regression

    regression channel

    Draws a center line (regression line) using the close price of each candle, and then draws equally spaced two parallel lines above and below it. The parallel lines pass through the close price farthest from the center line.

  1. Andrews' Pitchfork

    Andrews' Pitchfork

    Three parallel lines are drawn using three points: the starting point of the trend and the high and low just after the trend.

  2. Fibonacci

    Fibonacci

    Fibonacci channel uses the trendline and creates parallel channel lines using the Fibonacci ratio.

Step 2

Click the starting point on the chart and drag it to the end point to create the regression channel.

Drag it to the end point to create the regression channel Drag it to the end point to create the regression channel

Step 3

If you want to adjust the position of regression channel, make sure the white dots are being displayed on the regression channel and move each dot as necessary. If you cannot see the white dots, double-click near the regression channel to display the white dots.

Move each dot as necessary Move each dot as necessary

Number

Descriptions

1

Change the starting point of the regression channel.

2

Change the position of the regression channel.

3

Change the end point of the regression channel.
point Values displayed during drawing a regression channel
Values displayed during drawing a regression channel Values displayed during drawing a regression channel

Values displayed when dragging indicate the numbers of candlesticks and points from the starting point to the end point.

Step 4

To modify the regression channel settings, right-click near the channel and select "Properties of (channel name)".

Right-click near the channel and select Properties of (channel name) Right-click near the channel and select Properties of (channel name)

Step 5

On the "Properties" window, edit the parameters in the "Common", "Parameters", and "Visualization" tabs and click "OK".

"Common" tab

Click OK Click OK

Number

Item name

Descriptions

1

Name

Name the regression channel.

2

Description

The description of the regression channel can be displayed on the chart.
Related article: Show or hide items on chart

3

Style

Set the color, line type, and line thickness for the regression channel.

4

Draw object as background

Check this box if you want to place the regression channel behind the chart.

5

Disable selection

Check this box if you want to disable the editing of the regression channel.

"Parameters" tab

Parameters tab Parameters tab

Number

Item name

Descriptions

1

Starting point position

Specify the starting point position by date and time.

2

End point position

Specify the end point position by date and time.

3

Ray/Fill

Check each box to extend the regression channel to the left and right, or fill inside the channel.
point What are "Ray" and "Fill"?

Ray is a parameter that can be set on channels and other objects to extend the line beyond its end point. This makes it easier to analyze, as the line will be extended into the past and future, based on the price movement between the starting point and the end point at a certain point in time. As for "Fill", this feature fills the channel with a color to highlight its range.

Extend the standard deviation Extend the standard deviation

When "Ray right" is checked

When Ray right is checked When Ray right is checked

When "Ray left" is checked

When Ray left is checked When Ray left is checked

When "Fill" is checked

When Fill is checked When Fill is checked

"Visualization" tab

On the "Visualization" tab, you can specify the timeframes to use the regression channel with.

Visualization tab Visualization tab

Date

Created

 : 2022.09.08

Update

Last updated

 : 2024.08.22

Writer

Takayoshi Nakamaru

Manual production consultant, MBA

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Takayoshi Nakamaru

Nakamaru is a manual production consultant at FINTECS, a company that specializes in creating manuals for their clients.
With a wide range of experience from fintech to entertainment, he presents what user-friendly manuals should be like.
He works with numerous large corporations as an external manual production project manager.

【Business information】
http://www.fintecs.co.jp/profile/

Supervisor

Akira Takagi

Systems engineer, MetaTrader administrator

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Akira Takagi

After graduating from Computer Science at the Uninove, Brazil, in 2014, he has worked on various systems development projects.
He participated as a developer in the launch of forex services in 2019. Since then, he has also been involved in the development of MetaTrader plugins and APIs. He is certified by MetaQuotes as a MetaTrader5 Administrator and active in consulting and advisory as well.

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