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 Indicator calculates this value and updates it for each bitcoin price candle loaded in the bitcoin price chart.

The Indicator is calculated using the Linear Regression Bitcoin Indicator. The linear regression plots the bitcoin trend of the bitcoin price chart over a specified and given duration of time and this market bitcoin trend is determined by plotting a Linear Regression Bitcoin Trendline using "least squares fit" method. 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 = (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 down and adjusting at a rate of -0.30% for every candle.

The regression slope is displayed as a bi-color histogram that oscillates above & below zero centerline. Center line that is used to generate bitcoin signals is set at the 0 level.

A rising slope (greater than the previous value of 1 candlestick ago) is displayed and ==22==illustratedshownillustrated--and--shown 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

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Linear Regression Slope Bitcoin Analysis & Linear Regression Slope Signals

BTCUSD Analysis and Generating Signals