Trade Forex Trading

Learn Lessons, Strategies and Technical Analysis

Linear Regression Slope

The Linear Regression Slope calculates the slope/gradient value of regression lines which involve the current price bar and the previous n-1 price bar (where n = regression periods)

 

This Indicator calculates this value and updates it for each price candlestick loaded in the price chart.

 

The Indicator is calculated from the Linear Regression Indicator. The linear regression plots the trend of the price chart over a specified duration of time and this market trend is determined by plotting a Linear Regression Trend Line using the "least squares fit" method. The slope of this trend line is then calculated and this forms the linear regression.

Linear Regression Slope Forex Trading Indicator

Linear Regression Slope

 

The slope values are then smoothed by multiplying the raw slope indicator values by 100 and then dividing this value by the price

 

Linear Slope Regression = (raw value of slope * 100 / price).

 

The smoothing of the slope values is essential when comparing markets that are volatile and trade within wide price ranges for each price candlestick. The smoothed slope value will show the percent change in the price per every candlestick used to calculate the regression (best fit) line.

 

 

Technical Analysis

 

  • If the smoothing of the slope is 0.30, then the regression line is rising and adjusting at a rate of 0.30% for every candlestick.
  • If the smoothing of the slope of -0.30, then the regression line is going down and adjusting at a rate of -0.30% for every candlestick.

 

The regression slope is displayed as a bi-color histogram that oscillates above and below zero center line. The center line that is used to generate Forex trading signals is set at the 0 level.

 

  • A rising slope (greater than the previous value of 1 candlestick ago) is displayed in the Blue/Upward Slope color,
  • A declining slope (lower than the previous value of 1 candlestick ago) is displayed in the Red/Downward Slope color.

Technical Analysis of Linear Regression Slope Indicator

Technical Analysis

Last Call, 100% Bonus up to $5,000 - Deposit $5,000 get $10,000: Get Bonus Now - Last Call

Takes 4 to 6 weeks to open an account, open early: Read The Article "Account Opening Procedure"

Choose XM the Best Broker: Read The Article "Best Broker"

Malaysia Seminar

Poland FX Seminar Gala

XM Account Holders Attend Poland FX Seminar

XM Account Holders Phillipines Seminar

XM Account Holders Thailand Seminar

XM Account Holders Hungary Seminar

XM Forex Broker - Big Fair Human

XM Forex Broker Regulation and Licenses

Free Forex Contest

Silver and Gold

Recommended Broker

 

MQL5 Copy Signals