Sorry for the convoluted chart, but I wanted to complete this study utilizing accepted fibonacci levels as linear regression standard deviation levels.
If you manually adjust the periodicity of the chart, you can see that these levels are very well respected over time.
A 1 hour chart to fine tune to the highest Pearson's R level; however, as linear regression values change with updated data, these levels are but a snapshot and likely to change over time. I do expect that these levels will be respected short term.
Methods:
The green support/resistance (S/R) levels were identified from multiple fib regression/extension confluence zones.
LR 1) Multicolored descending Linear Regression (LR) channel and levels: derived on 4/26/2020 :: 1861 Bar (1H Chart) / 310 Day LR Channel;
LR 2) Purple ascending Linear Regression channel and levels: derived on 4/26/2020 :: 271 Bar (1H Chart) / 45 Day LR Channel;
Red arrows identify bearish divergence.
Future Analysis:
If you manually adjust the periodicity of the chart, you can see that these levels are very well respected over time.
A 1 hour chart to fine tune to the highest Pearson's R level; however, as linear regression values change with updated data, these levels are but a snapshot and likely to change over time. I do expect that these levels will be respected short term.
Methods:
The green support/resistance (S/R) levels were identified from multiple fib regression/extension confluence zones.
LR 1) Multicolored descending Linear Regression (LR) channel and levels: derived on 4/26/2020 :: 1861 Bar (1H Chart) / 310 Day LR Channel;
LR 2) Purple ascending Linear Regression channel and levels: derived on 4/26/2020 :: 271 Bar (1H Chart) / 45 Day LR Channel;
Red arrows identify bearish divergence.
Future Analysis:
- Observe s/r and LR levels moving forward.
- Observe likely mean reversion
They are:
LR 1) R=0.722745
LR 2) R=0.859373