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Attached is a better "as example" giving screenshot of the misleading and
most offensive Raff floating trend channels.
As you can well see these channels will cost a fortune when
taken seriuosly.
They ARE RECALCULATED EACH and EVERY DAY and as such are HYPER
ACTIVE and dynamical and are basicaly moving averaged double
regressioning "trend"(?????) channels and not the Support & Resistance
Trend Channels created by calculating Linear Regression.
>From their daily level-changing change as such their DAILY possible TARGET
and are in technical analysis of no use/value.
Also from their floating in a chart, not even lines to be taken seriously, not at all to
be ever considered and used as Support and Resistance lines on wich exact trade
decissions can be made.
Support & Resistance
Are levels realised and projected in time where prices will either try to go
get passed(peaks & throughs), reside(consolidation) and/or trade(swing).
The building up period(s) previous to either of these, are trends.
Each level in a chart where the price(Price indicator) make turns or "bounces"
can be considered as Support or Resistance. As such 'millions' of levels are to
be screened and found. As the price can move along in time, so will ofcourse
the trend. The reversals and turnarounds made are due to the "degree" of
resistance(obsticals) price will find at "certain" levels.
The idea of S&R and trendlines/channels is to help to show these obsticals in an
easier mannor and are therefore expressed in Major lines:
eg, there where the Price will most likely find its HUGEST obsticals, eg support or
resistance, drawn by surrounding the in trends developing and hit extremes and
then as such these trend lines are the "price hugging+surrounding borders".
These extremes are not ever met on daily or weekly basis, in fact hit occaisionaly
in/over time as the trends are not the rallies made within a trend, eg the continious
oscillating moves up and down within a trend.
The borders are the MOST important aspect to be considered. It can provide for
support and resistance as well as up and down levels or movements.
As such Linear(midst of 2 extremes) and Regression(price's progress and build up
in/over time) are statiscal measuring tools(functions) and when used combined are
a unique combination: "they messure the average of 2 extreme points in+over time".
To come to a Linear line, 3 points or figures are required:
1. the starting out point for a calculation to be made and
2. the 2 required statistical measurements, i.e. the High + Low, eg the MAJOR.
Note that by using this method of Linear Regression calculating, any averaging
IS ALREADY BEEN DONE and as such the Midst(Median of the 2 extremes)
is found as results.
Linear Regression Channels will provide for the Mid Price(Median Price), the levels
where the Price will return to, when or if it meets up with "road blocks" obstructions
on its way up or down in time.
The outer Linear Regression lines are then the statiscal High and Low(North and South)
points wich were used WHEN CALCULATION STARTED(=statiscal), and as such
are the trend channels lines.
As said the Raff Regression Channels are daily RECALCULATED AND therefore
CHANGING DAILY. Trends do not excist per day but in an overal period. In this overal
period extremes are hit upon, registered and when giving too much resistance will
lead into the price bouncing off. An extreme is set. This extreme point will be the
Linears basic value for the future. Daily highs and lows, open and closes are NOT
these extremes, but only a part of the long road wich will lead up reaching these
extreme points, the secundairy movements. The primary move/values in/over time
is Linear Regressions basics.
As such they, the secundairy movements, are of no statistic value for measuring
the TRUE Support and Resistance.
Since I do not like to mess around with facts and confirmation given+provided to me
by the underlay, in this instance the Price, even a possible use of the build-in
by Raff "double" regressioned Channels is NOT EVER to be considered.
As explained above, that is NOT Linnear Regression. That is Dynamical Regression
and in technical analysis this dynamicalising and therefore over regressioning is of
no explicite or neither particular value.
That Tool can also be thrown out.
Regards,
Ton Maas
Ms-IRB@xxxxxxxxx
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