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Linear Regression Slope Bitcoin Analysis & Linear Regression Slope Signals

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

This tool figures out this number and changes it for each bitcoin price bar that is put on the bitcoin price chart.

The Indicator makes use of the Linear Regression Bitcoin Indicator. By applying linear regression, it effectively plots the trend of Bitcoin prices over a set period. This trend is established through the "least squares fit" method, ensuring you get a clearer view of market movements. The slope of this bitcoin trend line is then calculated and this forms the linear regression.

Linear Regression Slope Trading Indicator - Linear Regression Slope BTC USD Crypto Trading Indicator Analysis

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 bitcoin price

Linear Slope Regression is calculated as (raw value of slope * 100 / bitcoin price).

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

BTCUSD Analysis and Generating Signals

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

The regression slope is presented as a two-color bar graph that goes up and down around the zero line. The zero line, which is used to make bitcoin signals, is at the zero mark.

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

Linear Regression Slope Indicator - Linear Regression Slope BTCUSD Crypto Trading Indicator Analysis

Technical Analysis in BTC USD Trading

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