Traders Tips by Technical Analysis, Inc.
Here are the MetaStock formulas for calculating the indicators used in my article, "Standard error bands":
21 period regression slope...
Here are the TechniFilter Plus formulas for the indicators used in "Standard error bands" in this issue. You can use these formulas to display the bands on bar charts.
The first formula, STD_ERR, is the standard error calculation. The parameter 21 is the period used in the regression analysis. The second parameter, 19, is the first parameter minus 2. The second formula, LSF_PSE, is the top band, which is the least-squares-fit (LSF) line plus 2 multiplied by the standard error. The third parameter is the number of
standard errors added to the LSF line. The last formula, LSF_MSE, is the bottom band, which is the least-squares-fit line plus 2 multiplied by the standard error.