Linear Regression Acceleration CFD Technical Analysis and CFD Signals

Linear Regression Acceleration calculates the change in the regression line's gradient on the current cfd price bar from its gradient from the previous cfd price bar. The value used to calculate the linear regression is referred to as the normalized acceleration value which is drawn for each cfd price bar formed on the cfd price chart.

Linear Regression Acceleration

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

Similarly, a normalized slope of -0.40 would indicate that regression line normalized slope is declining at the rate of -0.40 per cfd price bar.

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

NB: It is important to realize that a positive acceleration value doesn't equate to a positive slope value, it simply means gradient of slope is increasing. A negative acceleration value does not equate to a negative slope value, it simply means gradient of slope is decreasing.

Implementation of Linear Acceleration Regression Technical Indicator

The Linear Regression Acceleration indicator allows for the following; cfd price selection, regression periods, smoothing of raw cfd price before applying the regression and selection of the smoothing type.

Resulting regression slope is displayed as a bi-colored histogram which oscillates above & below 0.

reference line is set at the 0 level mark.

• A rising slope: (greater than its previous value of One bar before) is displayed in the up slope color.
• A declining slope: (lower than its previous value of One bar before) is shown using the down slope color.