Using Three Raff Regression Channels to Compare Trend Horizons

Summary

This indicator plots three Raff-style regression channels on one price chart to compare primary, secondary, and tertiary trends. The default lookback lengths are 50, 20, and 10 bars, respectively, and can be changed. Each channel supplies support and resistance boundaries around a regression line; the displayed boundaries average the Raff and Riff estimates, while the center regression lines are available but not plotted.

The proposed reading is comparative: when all three channel sets align, the market has a coherent directional or consolidating structure; when shorter-term channels diverge from the longer-term channel or from one another, a break from the broader trend is considered more likely. The document provides implementation code and interpretation guidance, but no test results, trading rules, or evidence of predictive performance. Channel alignment and divergence are therefore chart-reading cues, not validated forecasts, and their behavior depends on the selected lookback lengths and market data.

Key ideas

• The indicator displays primary, secondary, and tertiary Raff-style regression channels together.
• Its default channel lengths are 50, 20, and 10 bars.
• Each channel provides support and resistance estimates around a regression trend line.
• Alignment across horizons is interpreted as coherent market structure, while divergence is treated as a possible breakout warning.
• The document supplies code and interpretation but no evidence that the signals predict profitable trades.

Tags

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