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Linear Regression Acceleration BTC USD Trading Analysis & Signals

Linear Regression Acceleration calculates the changes in regression line's gradient/slope on the present bitcoin price candlestick from its gradient from the previous bitcoin price candlestick. The value used in calculating the linear regression is known as the normalized acceleration value which is drawn for each bitcoin price bar formed on the bitcoin price chart.

Linear Regression Acceleration Bitcoin Indicator - Linear Regression Acceleration Trading MT4 Indicator

Linear Regression Acceleration

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

In the same way, a normalized slope of -0.40 means the regression line slope is going down at a rate of -0.40 per bitcoin price bar.

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

It is crucial to grasp that a positive acceleration figure does not equate to a positive slope reading: rather, it signifies that the steepness of the slope is increasing. Conversely, a negative acceleration value does not signify a negative slope: it merely denotes a reduction in the slope's steepness.

Implementation of Linear Acceleration Regression Indicator

The Linear Regression Acceleration indicator lets you do these things: pick the bitcoin price, set regression periods, smooth the raw bitcoin price before using the regression, and pick the type of smoothing.

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

The reference line is set at Zero mark.

  • A rising upward slope: (higher than that of its previous value - of 1 bar before) is displayed in up slope color.
  • A declining slope: (lower than that of its previous/prior value of One bar before) is displayed using the downwards slope colour.

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