Define: Breakout Standard Regression Channel

UK Accounting Glossary

Definition: Breakout Standard Regression Channel



Advertisement



Full Definition of Breakout Standard Regression Channel


The Breakout Standard Regression Channel is a special case of Linear Regression Channels;  the upper and lower lines are spaced by a specified number of standard deviations above and below the middle linear regression baseline channel.

Calculation

The Breakout Standard Regression Channel is started using the first ‘n’ points in a chart to construct a baseline channel. The baseline channel is extended until the price breaks out of the channel and then a new channel computation begins. The Breakout Standard Regression Channel computation requires two parameters.  The first parameter is the time period for the least-squares fit and the second parameter is the number of standard deviations above and below the fit line to plot.

Application

Linear Regression Channels are a means for computing a line which forms the best fit to a given set of data points and two parallel lines above and below the mean line which provide resistance and support respectively.  Multiple regression channels are drawn because the high or low price may break the trend of the previous regression channel over the course of time.

The Breakout Standard Regression Channel is drawn using lines a number of standard deviations above and below the (middle) linear regression line.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/breakout-standard-regression-channel/
Modern Language Association (MLA):
Breakout Standard Regression Channel. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 03, 2020 https://payrollheaven.com/define/breakout-standard-regression-channel/.
Chicago Manual of Style (CMS):
Breakout Standard Regression Channel. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/breakout-standard-regression-channel/ (accessed: April 03, 2020).
American Psychological Association (APA):
Breakout Standard Regression Channel. PayrollHeaven.com. Retrieved April 03, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/breakout-standard-regression-channel/

Definition Sources


Definitions for Breakout Standard Regression Channel are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd March 2020.