The Channel tabbed page of the Drawing Tools floating palette contains a number of drawing tools that calculate and plot price channels.
With one exception, the Channel drawing tools utilize a regression line to define a central line from which two parallel channel lines are plotted. The method of calculating the distance from the central line is the main distinguishing feature between the tools in this group.
The exception, the Price Percentage Channel, has its center line defined by the user selecting a Start and End Price.
In the paragraphs below is a comparison of the following drawing tools:
All Channel drawing tools also share a number of features and controls. All of their properties dialog boxes contain similar commands and controls.
The common elements will be described and explained in the Common Settings section at the end of this topic.
Although the standalone Regression Line drawing tool does not reside on the Channel tabbed page (it is on the Line tabbed page) it is utilized by nearly all the channel tools so we will begin our discussion of Channel tools by describing this important component of many of them.
A Regression Line is a line of best fit through the selected data points, calculated using a linear regression calculation.
To apply a regression line to a price chart, left click at the date the regression line is to be calculated from, then move the cursor to the date of the regression line’s end point and click a second time.
The price level at which the clicks occur does not matter. The software uses a mathematical formula to calculate a gradient using the values of the price data type for each trading interval between the selected dates. As with all regression lines used in the channel tools, the default price data type is Close, but users can select Open, Low or High as well from the Properties dialog box.
The resulting line will be similar to a trendline but positioned according to a mathematical analysis of the price data in the chart.
Line type  User Input  Calculation method 
Regression
 Select Start/End Date, Select Price Data type, Default: Close  System, gradient calculated by lineal regression mathematical formula.

For more information, refer to the Regression Line topic.
Five channels are available in Your SOFTWARE.
The Linear Regression Channel drawing tool creates a channel parallel to a central regression line, the width of the channel is determined by the distance from the line of the highest high for the top line and the lowest low for the bottom line.
Center Line type  User Input  Distance to Channel Lines  Calculation method 
Regression
 Select Start/End Date, Select Price Data type, Default: Close  Highest High, Lowest Low
 System, simple value comparison

For more information, refer to the Linear Regression Channel topic.
The Raff Regression Channel drawing tool creates a channel parallel to a central regression line, the width of the channel is determined by the distance from the line of either the highest high or the lowest low for the bottom line. The greater of the two is the distance applied to both the top and bottom channel lines.
Center Line type  User Input  Distance to Channel Lines  Calculation method 
Regression
 Select Start/End Date, Select Price Data type, Default: Close  Equidistant, the greater of the Highest High or Lowest Low
 System, simple value comparison

For more information, refer to the Raff Regression Channel topic.
The Regression Percentage Channel drawing tool creates a channel parallel to a central regression line, the width of the channel is determined by a user defined percentage of the Start Price of the regression line added to the center line for the top channel line, and subtracted for the bottom line.
Center Line type  User Input  Distance to Channel Lines  Calculation method 
Regression
 Select Start/End Date, Select Price Data type, Default: Close  User Defined percentage of regression line price, default: 5% for top, 5% for bottom  System, percentage calculation

For more information, refer to the Regression Percentage Channel topic.
The Regression Percentage Channel drawing tool creates a channel parallel to a central price trendline, the width of the channel is determined by a user defined percentage of the Start Price of the regression line added to the center line for the top channel line, and subtracted for the bottom line.
Center Line type  User Input  Distance to Channel Lines  Calculation method 
Trendline
 Select Start/End Price/Date, Select Price Data type, Default: Close  User Defined percentage of trendline price, default: 5% for top, 5% for bottom  System, percentage calculation

For more information, refer to the Price Percentage Channel topic.
The Standard Deviation Channel drawing tool creates a channel parallel to a central regression line, the width of the channel is determined by a user defined percentage of the Start Price of the regression line added to the center line for the top channel line, and subtracted for the bottom line.
Center Line type  User Input  Distance to Channel Lines  Calculation method 
Regression
 Select Start/End Date, Select Price Data type, Default: Close Set Deviation multiple, Default: 1  Standard Deviation value is calculated for the timeframe then multiplied by the deviation multiple and applied to the top and bottom lines.
 System, standard deviation calculation, then multiplication

For more information, refer to the Standard Deviation Channel topic.
The Properties dialog boxes of the Regression line and Channels drawing tools share many common components.
This is a typical Properties dialog box for this group, having two tabbed pages Settings and Appearance.
In fact, this same dialog box is used for Regression Line, Linear Regression Channel and the example itself, Raff Regression Channel.
For every Regression line or Channel users can manually alter the start and end date of the line or center.
Initially these dates are set using the cursor. This can be inexact and require modification so that the line begins on the date of a significant market movement.
Either type in a new date using the dd/mm/yyyy format, or use the dropdown calendar selector tool.
Lines and Channels using a regression calculation must identify which price data type to use in the calculation.
Select from Close, High, Low or Open.
The default is Close.
The Standard Deviation Channel will also use this price data type in its standard deviation calculation for the position of its channel lines.
Select the checkbox for Extend Left or Extend Right to extend the plot in either direction indefinitely.
Either one or the other or both can be selected.
This command is available to Regression Lines and all Channel drawing tools.
Select the checkbox for Locked to fix the current position. Locking the position will avoid the lines being inadvertently shifted.
This command is available to Regression Lines and all Channel drawing tools.
This command is available for the Percentage Price Channel and Regression Percentage Channel drawing tools.
The percentages for each channel can be individually adjusted in the Price Percentage Channel Properties dialog box.
Enter the percentage values as whole numbers in the Top Percent and Bottom Percent text entry boxes.
The Default value is 5% for both channel lines.
This command is applies only to the Standard Deviation Channel drawing tool.
Go to the Standard Deviation Channel topic for a description of its function and setting options.
The three commands on this tabbed page are identical for Regression Lines and all Channel drawing tools.
The same values are applied uniformly to all components of the tool, individual lines of a channel cannot have different Appearance values applied to them.
Use the dropdown color picker to select a different color.
Click Custom to open the color creator dialog. Select hue from the color circle on the left, alter its lightness with the scroll bar on the right.
Select between Dotted, Dashed or Solid.
Choose between 5 different line weights (thickness) settings.
Once changes have been made to settings on either tabbed page, they can be saved for future use. Click the Default button to alter the default setting for the tool.
For more information, go to the Setting New Defaults topic.