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Linear Regression Analysis & Linear Regression Signals

A regression line is also called a best-fit line. It shows the price trend over a set time. Use the least squares method to draw it. This cuts the space between price points and the line.

Linear Regression Indicator for MT4 - Free Linear Regression MT4 Download

Unlike the straight Regression Trend-line indicator, the technical indicator plots the end values of multiple Linear Regression trendlines. Any single point along the Linear Regression will be equal to the end value of a Regression Trendline, but resulting trend-line resembles the MA Moving Average.

But unlike the MA Moving Average, this trading indicator doesn't show as much delay since it's fitting a line onto data points rather than averaging them.

The Linear Regression estimates the price for trading tomorrow, made one day earlier. When prices are always higher or lower than what was predicted, a trader can think they will quickly return to the more likely predicted prices.

Put simply, this technical indicator mathematically projects the statistically expected price level on the chart: any significant displacement away from this fundamental regression line is generally expected to be transient.

Gold Analysis and How to Generate Signals

Given that BTCUSD trades against the US Dollar (BTCUSD), the only relevant Fundamental Economic News Data Reports that a btc/usd trader needs to attend to are those originating from the United States.

This indicator resembles a Moving Average but it has a bi-color representation.

  • Bullish Signal (Blue color) - A rising line (greater than its previous value one previous bar before) is displayed in the upward trend blue colour, while
  • Bearish Signal (Red colour) - a falling line (lower than its previous value one previous bar before) is displayed in the down-trend red color.

How Do I Add Linear Regression Indicator on Chart in Platform?

Technical Analysis for Gold Market Trades

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