Page 1 of 1
Linear Regression and Bollinger Bands
Posted: Fri Mar 20, 2015 5:44 pm
by breese33
For Chris or anybody on the forum...the Liner Regression lines in the Liner Regressions template are drawn at 2 standard deviations encompassing approximately 92% of all the price movement...what advantage are LR lines over Bollinger Bands which are also drawn at 2 STD and also encompass the same price movement..are they equivalent? Why use one over the other? Thanks
Brad Reese
breese33@cfl.rr.com
Re: Linear Regression and Bollinger Bands
Posted: Sat Mar 21, 2015 7:00 am
by Chris White
Hi Brad,
The width of the bands will be the same for the last bar of a Bollinger Band indicator and the entire range of data for the Linear Regression channel (If using the same length for the indicator, ie BB(20,2) and LR(20)).
The point around which the channels are drawn will be different. In the Bollinger Band case the channels are drawn around the Moving average. For Linear regression, the channels are drawn around the Linear regression line.
Chris.