RTC vs DMA

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Here is a what happened later in this 6/4 DMA crossover example....

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How To Create A 6/4 DMA

To manually create a “6/4 Moving Average” in the Advanced GET program, go to the Moving Average menu....

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... go to the Moving Average menu, and create two moving averages. To do this you select the "ADD" icon.

Both moving averages will have a “Length” set to “6” and the “Offset” set to “4.” The difference between the two moving averages will be to set one moving average “Source” to “High” and change the color to “Blue;” the other set the “Source” to “Low” and make “Red” the color.

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The difference between the new 6/4 DMA two moving average settings is very minor. In this example we select the following first variable for the 6/4 DMA setting--

select “Source” to “High” and change the color to “Blue” ....

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For the second 6/4 DMA settings we select the following different variables--

select “Source” to “Low” and change the color to “Red” ....

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Make sure you create a 6/4 DMA "Template" so you do not need to recreate these two settings every time you want to add a 6/4 DMA to your analysis.

A 6/4 DMA template would include two moving average settings that look like the illustration below....

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To create a 6/4 DMA template, go to the moving average menu, select "Template," Add the two 6/4 DMA variable settings, then make sure you "Save" the template using a name that helps you identify what it is when you need it in the future....

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Overview of Regression Trend Channel (RTC)

A linear regression trendline is the straight line mathematical measurement of the relationship between sets of price data that plot out as a trendline.

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In many ways it is similar to a moving average. The difference is there is no lagging the linear regression trendline and, secondly, it is helpful because it often identifies a change in trend quicker than a moving average.

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According to theory, prices can vacillate above and below the regression trendline and still the overall trend is maintained. By using the Regression Trend Channel (RTC) you can better identify that outer range of that overall trend pattern....

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A Regression Trend Channel (RTC) is simply the mathematically standard deviation of the linear regression price data. It is calculated using the actual prices of the bars in the trend.

The idea is to draw an upper and lower channel from the linear regression line by using the standard deviation of the prices. The break of a Regression Trend Channel is usually used as an entry or exit signal.

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The RTC is similar to Bollinger Bands which draw bands using standard deviations of a moving average. However, instead of using a moving average, by using the RTC tool, Advanced GET is simply allowing you to use the linear regression line of a swing you identify. (In case you where wondering, the Advanced GET RTC uses the data bar midpoint for its calculation.)....

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Find the Regression Trend Channel (RTC) in the Advanced GET studies selection or highlight the RTC icon. To activate the RTC default menu, click your right mouse button.

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The Advanced GET defaults the trendline source to "High-Low 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. Our studies indicate the H-L flip generates the best regression trendline. You can change to a different calculation method if you have a different preference.

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The program also defaults with the Standard Deviation turned "On" for the Upper and Lower Channel. With the standard deviations checked off you will no longer have a regression trend channel, but you could use this tool as a channeling technique. We prefer the standard deviation to be turned "On."