Linear Regression Channel Trading Strategy

eSignal Linear Regression Channel Trading Strategy: The Sell Strategy

1.

1. Find a trending stock that has not exceeded the upper channel until now.
2. Sell the extreme price swing at the upper outer linear regression channel.
3. Place the appropriate trailing stop above the highest price bar spike at the upper channel. (The reward potential for the risk taken should be 1.6 or greater.)

2.

1. Make the linear regression median line your first target.
2. Make the lower channel line your second target if the price trades through the median line.
3. Maintain an appropriate trailing stop for your position.
4. Once your initial target is met, tighten your trailing stop.
5. If the price continues through the median line and approaches the lower regression channel line, prepare to close the position out as it exceeds initial expectations.