The Raff Regression Channel is a linear regression with evenly spaced trend lines above and below. The width of the channel is based on the high or low that is the furthest from the linear regression. The trend is up as long as prices rise within this channel. An uptrend reverses when price breaks below the channel extension. The trend is down as long as prices decline within the channel. Similarly, a downtrend reverses when price breaks above the channel extension.

.Note that the linear regression is based on closing prices.