Linear Regression Bitcoin Analysis & Linear Regression Trading Signals
Another name for a regression line is a line of the best fit/best fit line. This btcusd indicator plots the bitcoin trend of the bitcoin price over a specified duration of time. The market bitcoin trend is determined by calculating a Linear Regression Bitcoin Trend Line using "least squares fit" method. This method helps to minimize the distance between the bitcoin price data points and the line of best fit.
Unlike the straight Regression Trend Line indicator, the technical indicator draws the end values of multiple Linear Regression trend-lines. Any single point along the Linear Regression will be equal to the end value of a Regression Trendline, but resulting bitcoin trendline resembles the Moving Average.
But unlike the Moving Average, this indicator doesn't show as much delay since it is fitting a line on to information points rather than averaging them.
The Linear Regression is a prediction of the tomorrow's bitcoin price drawn today, one day before. When the bitcoin prices are steadily higher or lower than the forecast bitcoin price, then a bitcoin trader can expect them to return quickly to more realistic forecasted levels.
In other terms, this technical indicator shows where the chart bitcoin prices "should" be trading based on a statistical basis & any dis-proportionate price deviation from the regression line is likely to be short lived.
BTCUSD Analysis and How to Generate Signals
This btcusd indicator allows for bitcoin price chooseion, adjusting number of periods & smoothing of bitcoin price data before applying the calculation & the selection of smoothing type.
This btcusd technical indicator resembles a moving average but it has got a bi-colour representation.
- Bullish Signal (Blue color) - A rising line (greater and higher than its previous value one previous price bar before) is displayed and illustrated in the up bitcoin trend blue color, while
- Bearish Signal (Red color) - a declining/falling line (lower and lesser than its previous value 1 previous bar before) is displayed in the down bitcoin trend red color.
Analysis in Bitcoin Trading
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