Your chart showed the LinReg and SMA lines went outside the channel but that's not entirely accurate because the channel is valid only for the current bar. Using LinReg (Period 60, Std Dev 2) will help you visualize historical price movement above and below the channel.
Also dchappy method uses Heiken Ashi indicator.
MikeWinfrey wrote:Sometimes a picture is worth a thousand words. This is a picture of my chart. The parallel blue lines are obviously the regression channel that dchappy uses with one exception. This is a draw object as opposed to using the Regression Channel indicator that comes with NT. I put the regression channel drawobject in an indicator so I can use it to practice on historic data which can't be done using the Regression Channel indicator. The cyan line is the 25 period LinReg indicator which is the same as Woodie's LSMA. Found that out a few years back. The black line is the CCI line. So, I really don't even need the CCI on my chart any longer but like dchappy was at one time, it's still a crutch. The middle panel with the red and green dots is a traffic light that tells me where the cyan line is in relation to the black line. In other words, it tells me when the crosses occur.
In addition to the cross, I am looking for both the cyan and black lines to go outside the regression channel for the cross to take place. I don't remember dchappy mentioning that but it seems to be a good indication of exhaustion.
I'm really liking this setup so far. Been back over a few days worth of charts and it's doing well. Today is my first day to actually trade this chart.