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Linear Regression Acceleration Gold Trading Analysis and Gold Trading Signals

Linear Regression Acceleration calculates the change in the regression line's gradient on the current xauusd price bar from its gradient from the previous xauusd price bar. The value used to calculate the linear regression is referred to as the normalized acceleration value which is drawn for each xauusd price bar formed on the xauusd price chart.


Linear Regression Acceleration XAUUSD Indicator

Linear Regression Acceleration


If the normalized acceleration is 0.30, then the regression line normalized slope will be rising at the rate of 0.30 per xauusd price bar.


Similarly, a normalized slope of -0.40 would indicate that the regression line normalized slope is declining at the rate of -0.40 per xauusd price bar.


For example, if the current xauusd price bar normalized slope value is 0.40 and the previous xauusd price bar normalized slope value is 0.20, then the normalized acceleration of the current xauusd price bar would be calculated as 0.40 - 0.20 = 0.20.


NB: It is important to realize that a positive acceleration value doesn’t equate to a positive slope value, it simply means the gradient of the slope is increasing. A negative acceleration value doesn’t equate to a negative slope value, it simply means the gradient of the slope is decreasing.


Implementation of Linear Acceleration Regression


The Linear Regression Acceleration indicator allows for the following; xauusd price selection, regression periods, smoothing of raw xauusd price before applying the regression and selection of the smoothing type.


The resulting regression slope is displayed as a bi-colored histogram that oscillates above & below 0.


The reference line is set at the 0 level mark.


  • A rising slope; (greater than its previous value 1 bar before) is displayed in the up slope color.

  • A declining slope; (lower than its previous value 1 bar before) is displayed using the down slope color.

 

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