Analysis Linear Regression Acceleration Indicator Sell Signal and Buy Signal

Linear Regression Acceleration How to Read Indicator Buy Trade Signal

Analysis Buy Signal Using Linear Regression Acceleration Indicator

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

This Linear Regression Acceleration technical indicator buy signal tutorial explains in detail how to read buy signals using the Linear Regression Acceleration technical indicator as illustrated in the trading example below:

Analysis Buy Signals Using Linear Regression Acceleration Indicator

Linear Regression Acceleration How to Read Indicator Sell Trading Signal

Analysis Sell Trading Signal Using Linear Regression Acceleration Technical Indicator

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

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

Analysis Sell Trading Signals Using Linear Regression Acceleration Technical Indicator

Analysis Linear Regression Acceleration Sell and Buy

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

Analysis Linear Regression Acceleration Indicator Sell Signal

Analysis Linear Regression Acceleration Technical Indicator?

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

For example, if the current price candlestick 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 candlestick 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 doesn't equate to a negative slope value, it simply means the gradient of the Linear Regression slope is decreasing.

Implementation of Linear Acceleration Regression Technical Indicator

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

Resulting regression slope is displayed as a bi-colored histogram that 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 in the up slope color.
A declining Linear Regression slope: (lower than its previous value 1 bar before) is displayed using the down slope color.