Using BSI to Draw Regression Trend Lines and Tango Channels

Summary

This brief indicator description explains a chart overlay that first uses the BSI indicator to assess trend conditions, then draws either a regression-based trend line or channels using a Tango line. It identifies plotted elements by color: upper and lower trend or channel boundaries, reversal markers, the Tango line presented as an entry level, a moving average of that line, and the BSI value.

The examples are described as showing upward trend lines, a channel, and a downward trend line. The document says a compatible Tango line indicator was rewritten for this tool, but it does not provide the calculation rules, settings, entry or exit criteria, or chart evidence in the supplied text. It also reports no backtest or performance results. Traders therefore get a high-level guide to the indicator’s visual components, but not enough information here to reproduce the method or assess its reliability.

Key ideas

• The indicator uses BSI to determine trend conditions before drawing lines or channels.
• Trend lines are based on regression, while channel construction uses a Tango line.
• Colored markers and lines represent boundaries, reversal bars, an entry reference, its moving average, and BSI.
• The description gives no formulas, detailed settings, trading rules, or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.