Analysis Linear Regression Acceleration Indicator Sell Signal & Buy Signal

Linear Regression Acceleration How to Read Indicator Buy Signal

Analysis Buy Signal Using Linear Regression Acceleration Indicator

Steps on how to read buy signals using Linear Regression Acceleration indicator:

This Linear Regression Acceleration buy signal tutorial describes in detail how to read buy signals using the Linear Regression Acceleration as is illustrated and shown in the trading example below:

Analysis Buy Signals Using the Linear Regression Acceleration Indicator

Linear Regression Acceleration How to Read Indicator Sell Signal

Analysis Sell Signal Using Linear Regression Acceleration Technical Indicator

Steps on how to study sell signals using Linear Regression Acceleration trading indicator:

This Linear Regression Acceleration sell signal tutorial explains in detail how to read sell trading signals using the Linear Regression Acceleration like as illustrated and shown in the example below:

Analysis Sell Signals Using the Linear Regression Acceleration Indicator

Analysis Linear Regression Acceleration Sell and Buy

Linear Regression Acceleration indicator calculates changes in the regression line's gradient on the ruling price candle bar from its gradient/slope from previous price candle bar. The value used to calculate the Linear Regression Acceleration is referred to as the normalized acceleration value which is plotted for each price candle bar formed & shaped on the price chart.

Analysis Linear Regression Acceleration Indicator Sell Signal

Analysis Linear Regression Acceleration Indicator?

If the normalized Linear Regression Acceleration is 0.30, then the regression line normalized slope will be moving upward at the rate of 0.30 per price candle bar.

Similarly, a normalized slope of -0.40 would signal that the regression line normalized slope is falling at the rate of -0.40 per price candle bar.

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

NB: It is crucial to realize that a positive acceleration reading does not equate to a positive slope value, it simply means the gradient of the Linear Regression slope is increasing. A negative acceleration reading does not equate to a negative slope value, it simply means the gradient of the Linear Regression slope is decreasing.

Implementation of the Linear Acceleration Regression Indicator

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

Resulting regression slope is displayed as a bi-colored histogram which oscillates above and below 0 centerline mark.

The reference line is set at 0 mark.

A rising Linear Regression slope: (greater than its previous value 1 bar before) is displayed and shown in the up slope color.
A declining Linear Regression slope: (lower than its previous value 1 bar before) is displayed using the down slope colour.