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Linear Regression Acceleration XAUUSD Technical Analysis and XAUUSD Signals

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


Linear Regression Acceleration Technical XAUUSD Indicator

Linear Regression Acceleration


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


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


For example, if the current gold price bar normalized slope value is 0.40 and the previous gold price bar normalized slope value is 0.20, then the normalized acceleration of the current gold 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 the gradient of the slope is increasing. A negative acceleration value doesn’t equate to a negative slope value, it simply means the gradient of the slope is decreasing.


Implementation of Linear Acceleration Regression


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


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


The reference line is set at the 0 level mark.


  • A rising slope; (greater than its previous value 1 bar before) is displayed in the up slope color.

  • A declining slope; (lower than its previous value 1 bar before) is displayed using the down slope color.

 

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