How to Add Linear Regression Indicator on MT4 Charts

Step 1: Open Navigator Window Panel on FX Trading Platform

Open Navigator window as shown and illustrated below: Go to "View" menu (click on it), then select "Navigator" window (click), or From Standard Tool-Bar click "Navigator" button or press keyboard short cut keys "Ctrl+N"

On Navigator panel, select 'Indicators', (DoubleClick)

How to Add Linear Regression Indicator on MT4 - MT4 Linear Regression Indicator

Step 2: Expand the Indicators Menu on the Navigator - Adding Linear Regression MT4 Indicator

Expand the menu by clicking the expand button marker (+) or double click the "indicators" menu, after this the button will appear as (-) and will now display a list as shown below - select the Linear Regression chart indicator from this list of indicators so as to add the Linear Regression indicator on the chart.

How to Add Linear Regression Indicator - From the Above window you can then place Linear Regression indicator that you want on the chart

How to Add Custom Linear Regression Indicator to MT4

If the indicator you want to add is a custom indicator - for example if the Linear Regression indicator you want to add is a custom indicator you will need to first add this custom Linear Regression indicator on the MetaTrader 4 platform & then compile custom Linear Regression indicator so that the newly added Linear Regression custom indicator pops up on the list of custom indicators in MT4 platform.

To learn how to install Linear Regression indicators on MT4, how to add Linear Regression indicator window to MT4 and how to add Linear Regression custom indicator in MT4 - How to add a custom Linear Regression indicator on MT4.

About Linear Regression Indicator Described

Linear Regression Analysis and Linear Regression Signals

Another name for a regression line is a line of the best fit/best fit line. This indicator plots the market trend of the currency price over a specified duration of time. The market trend is determined by calculating a Linear Regression Trendline using the "least squares fit" method. This method helps to minimize the distance between the price data points and the line of best fit.

Unlike the straight Regression Trendline indicator, the indicator draws the end values of multiple Linear Regression trendlines. Any single point along the Linear Regression will be equivalent to the end value of a Regression Trend-Line, but the resulting trend-line looks like the MA.

But unlike the MA, this trading indicator doesn't show as much delay since it's fitting a line onto data points rather than averaging them.

The Linear Regression is a prediction of the tomorrow's price plotted today, one day before. When the prices are steadily higher or lower than the forecast price, then one can expect them to quickly return to more realistic fore-casted levels.

In other terms, this technical indicator shows where the chart prices "should" be trading based on a statistical basis and any disproportionate deviation from the regression line is likely to be short-lived.

Technical Analysis & How to Generate Signals

This indicator allows for price selection, adjusting number of periods & smoothing of price data before applying the calculation & the selection of smoothing type.

This indicator looks like a Moving Average but it has a bi-color representation.

• Bullish Signal (Blue color) - A rising line (greater than its previous value 1 previous bar before) is displayed in the up trend blue color, while
• Bearish Signal (Red color) - a declining line (lower than its previous value 1 previous bar before) is displayed in the down trend red color.

Technical Analysis in Forex