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| **PineScript** | [sdchannel.pine](sdchannel.pine) |
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- Standard Deviation Channel plots a linear regression line through price data with parallel bands at a specified number of standard deviations of re...
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- Parameterized by `period` (default 20), `multiplier` (default 2.0).
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- Output range: Tracks input.
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- Requires `period` bars of warmup before first valid output (IsHot = true).
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- **Similar:** [BBands](../bbands/bbands.md), [RegChannel](../regchannel/regchannel.md) | **Complementary:** LinReg slope for trend direction | **Trading note:** Standard deviation channel around linear regression; tighter than Bollinger for trending markets.
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- Validated against TA-Lib, Skender, and Tulip reference implementations where available.
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Standard Deviation Channel plots a linear regression line through price data with parallel bands at a specified number of standard deviations of residuals above and below. Unlike Bollinger Bands which measure deviation from a moving average, SDCHANNEL measures deviation from the best-fit trend line, capturing how much price wanders from its underlying trajectory rather than from its simple average. The algorithm is identical to REGCHANNEL; the distinction is purely a naming convention found across different platforms and literature.
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