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Introduction
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Swing Setups:    Linear Regression StrategiesNEW!
Click here for an audio visual Linear Regression Strategy Tutorial!

Linear Regression Strategies

The strategies in this section identify patterns based on linear regression channels. Linear regression channels provide an excellent way to identify momentum, trend and overbought or oversold conditions in a stock. These strategies provide a starting point for identifying swing trading and day trading candidates. Use these strategies to find stocks before the market opens that are likely to experience unusual price moves over the next few days. The results are displayed as a symbol list so that they may be quickly and easily cut and pasted into a HotScans portfolio or the watchlist window of another trading application.

Dataview created these linear regression strategies by working closely with Dr. Mel Raiman, the developer of the Precision Trading System (PTS), and a number of PTS graduates. The Precision Trading System is a unique and powerful approach to trading which can easily exploit the trading conditions identified by linear regression scans. For more information about PTS courses click here.

Stocks in Trending Channels

Daily Retracements: The Bottom of an Up Channel
Stocks below -.9 standard deviations of a 23-day linear regression channel. The results are sorted with the steepest upwardly sloping channels first. The criteria for this scan are:

  • Average volume (30 days) > 500,000
  • Average daily range (30 days) > $.40
  • 3-day linear regression line below -.9 standard deviations
  • 3-day linear regression line is turned up
  • The slope of the 23-day linear regression channel is up

Daily Retracements: The Top of a Down Channel
Stocks above +.9 standard deviations of a downwardly sloping 23-day linear channel. The results are sorted with the steepest downward sloping channels first. The criteria for this scan are:

  • Average volume (30 days) > 500,000
  • Average daily range (30 days) > $.40
  • 3-day linear regression line above +.9 standard deviations
  • 3-day linear regression line is turned down
  • The slope of the 23-day linear regression channel is down

Stocks in Flat Channels

Flat Daily Channels: The Bottom of a Flat Channel
Stocks below -.9 standard deviations from a flat 23-day linear regression line. The results are sorted based on the distance between the 3-day linear regression line and the 23-day linear regression line. The criteria for this scan are:

  • Average volume (30 days) > 500,000
  • Average daily range (30 days) > $.40
  • 3-day linear regression line below -.9 standard deviations
  • The slope of the 23-day linear regression channel is flat

Flat Daily Channels: The Top of a Flat Channel
Stocks above +.9 standard deviations from a flat 23-day linear regression line. The results are sorted based on the distance between the 3-day linear regression line and the 23-day linear regression line. The criteria for this scan are:

  • Average volume (30 days) > 500,000
  • Average daily range (30 days) > $.40
  • 3-day linear regression line above +.9 standard deviations
  • The slope of the 23-day linear regression channel is flat



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