What is this indicator?
Plots the best-fit regression line through price and draws a parallel channel around it to show price's deviation from its statistical mean. Price near the edge of the channel is usually considered an extreme relative to the statistical trend.
How to read the chart
When the indicator's main line takes on a clear direction, it usually confirms the market's dominant trend in that same direction; crossovers and changes in slope are the main points of focus.
Practical tip
It's best to use this indicator alongside a momentum indicator so that both trend direction and trend strength can be measured.