How do I apply Auto Trend Channels study?
Auto Trend Channels are Regression Trend Channels that are automatically drawn by eSignal based upon the degree of Pivots and the trend direction. The break of an Auto Trend Channel line is usually used as an entry or exit signal.
To apply the Auto Trend Channels study, right-click on the chart. When the menu appears, place your cursor on Advanced GET Studies and then select GET: Auto Trend Channels. Three parallel colored lines will appear on the chart:
To change the settings of the the Auto Trend Channels study, right-click on the chart. When the menu appears, left-click on Edit Studies. In the Study field, select Auto Trend Channels and the Study Properties window will be displayed:
The Trend Line On/Off button indicates if the Trend Line will be displayed. The Trend Line does not have to be displayed for the Automatic Trend Channels to work correctly. Left-click this button to turn the display of the Trend Line on or off.
The Trend Line Source selection list allows you to choose which prices are used in the calculation of the Regression line:
Open = The regression line will be calculated using the open prices of the bars.
High = The regression line will be calculated using the highs of the bars.
Low = The regression line will be calculated using the lows of the bars.
Close = The regression line will be calculated using the closing prices of the bars.
(H+L)/2 = The regression line will be calculated using the value derived from adding the highs with the lows and dividing by 2.
(H+L+C)/3 =The regression line will be calculated by using the value derived from adding the highs with the lows with the close and dividing by 3.
(O+H+L+C)/4 = The regression line will be calculated by using the value derived from adding the opens with the highs with the lows and dividing by 4.
H-L Flip = The H-L flip indicates that the Automatic Trend Channels should be calculated using the Low of the bars when the trend is up and the High of the bars when the trend is down.
The Trend Line Color selection list allows you to choose the color in which the Trend Line will be drawn.
The Upper Channel On/Off button indicates if the Upper Channel of the regression line will be displayed. Left-click this button to turn the display of the Upper Channel on or off.
The Upper Channel Std. Devs. check box indicates if the standard deviation of the regression line should or should not be used for the Upper Channel. When this box is checked, the Upper Channel will use the standard deviation indicated in the number box directly below it. If the Std. Devs. check box is not checked, the Upper Channel will be drawn using the highest bars in the trend encompassed by the channels.
The Upper Channel Color selection list allows you to choose the color in which the Upper Channel line will be drawn.
The Lower Channel On/Off button indicates if the Lower Channel of the regression line will be displayed. Left-click this button to turn the display of the Lower Channel on or off.
The Lower Channel Std. Devs. check box indicates if the standard deviation of the regression line should or should not be used for the Lower Channel. When this box is checked, the Lower Channel will use the standard deviation indicated in the number box directly below it. If the Std. Devs. check box is not checked, the Lower Channel will be drawn using the lowest bars in the trend encompassed by the channels.
The Lower Channel Color selection list allows you to choose the color in which the Lower Channel line will be drawn.
The Minimum Pivot selection list allows you to choose the degree of Pivots you wish the Automatic Trend Channels to use as the starting point of the Trend Channel. If Primary is highlighted, the Automatic Trend Channels will only use the Primary Pivot points as starting points for the channels and will not change until a new Primary Pivot point is in place.
The Pearson's R On/Off button indicates if the Pearson's R value will be shown at the top or bottom of the Automatic Trend Channels. As the Pearson's R value gets closer to the value of 1, the calculated trend line is matching the actual value of the data. This means that the Automatic Trend Channels are "fitting" the trend very well. As the Pearson's R value gets closer to the value of 0, the trend line does not match the value of the data. This means that the Automatic Trend Channels do not "fit" the trend very well.