A Linear Regression Channel is a indicator used to determine the trend a security is developing and the most probable price range that will take place within that trend. The idea of the Linear Regression Channel 50% is close to the Linear Regression Channel but the upper and lower lines are drawn at the distance of one, not of two, standard deviation from the Linear Regression line.The regression channel is created using a price history and consists of an upper line, a middle line, and a lower line. The upper channel line is formulated by connecting a series of current high price points in a straight line, the middle line by connecting intermediate highs and lows, and the lower channel line by connecting a series of low price points.
The distance between the channel lines to the regression line is the greatest distance that any one closing price is from the regression line. The Regression Channels then contain the price movement, with the bottom channel line providing support and the top channel line providing resistance. Prices may extend outside of the channel for a short period of time and usually if prices remain outside the channel for a long period of time, a reversal in trend may be imminent.
The channel basically supplies a picture of the overall trend of a stock and indicates whether the security is in an uptrend, downtrend, or just remaining static.
You are describing 2 different types of channels.
A regression channel is where the high line is drawn based on the greatest distance from the highest point to the regression line and the lower line based on the greatest distance from the lowest data point.
A standard deviation channel is what you were describing.