How to Add Linear Regression Slope Indicator on MT4 Charts
Step 1: Open Navigator Window on Software
Open Navigator panel as shown & displayed below: Go to 'View' menu (click on it), then choose 'Navigator' panel (click), or From Standard Tool-Bar click 'Navigator' button or press keyboard short cut keys 'Ctrl+N'
On Navigator window, choose 'Indicators', (Double Click)
How Do I Add Linear Regression Slope Indicator on MT4 - MT4 Linear Regression Slope Indicator
Step 2: Expand the Indicators Menu on the Navigator - Adding Linear Regression Slope 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 Slope chart indicator from this list of indicators so as to add the Linear Regression Slope indicator on the chart.
How Do You Add Linear Regression Slope Indicator - From the Above window you can then place Linear Regression Slope indicator that you want on the chart
How to Add Custom Linear Regression Slope Indicator to MT4
If the technical indicator you want to add is a custom indicator - for example if the Linear Regression Slope technical indicator you want to add is a custom indicator you will need to first add this custom Linear Regression Slope indicator on the MT4 platform & then compile custom Linear Regression Slope indicator so that the newly added Linear Regression Slope custom indicator pops up on the list of custom indicators in MT4.
To learn how to install Linear Regression Slope indicators on MT4, how to add Linear Regression Slope indicator window to MT4 and how to add Linear Regression Slope custom indicator in MT4 - How to add a custom Linear Regression Slope indicator in MT4.
About Linear Regression Slope Indicator Explained
Linear Regression Slope Analysis Signals
Linear Regression Slope calculates the slope/gradient value of regression lines which involves the current price bar & the previous n-1 price bar (where n = regression periods)
This Indicator calculates this value and updates it for each price candle loaded in the price chart.
The Indicator is calculated from the Linear Regression Indicator. The linear regression plots the trend of the price chart over a specified duration of time & this market trend is determined by plotting a Linear Regression Trend Line using the "least squares fit" method. The slope of this trendline is then calculated & this forms the linear regression.
Linear Regression Slope
The slope values are then smoothed by multiplying the raw slope indicator values by 100 and then dividing this value by price
Linear Slope Regression = (raw value of slope * 100 / price).
The smoothing of the slope values is essential when comparing markets that are volatile and trade within wide price ranges for each price candlestick. Smoothed slope value will show the percent change in the price per every candlestick used to calculate the regression (best fit) line.
Forex Analysis & Generating Signals
- If the smoothing of the slope is 0.30, then the regression line is rising & adjusting at a rate of 0.30% for every candlestick.
- 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 candlestick.
The regression slope is displayed as a bi-color histogram that oscillates above & below zero center line. Center-line which's used to generate signals is set at the 0 level.
- A rising slope (greater than the previous value of 1 candle ago) is displayed in the Blue/Upwards Slope color,
- A declining slope (lower than the previous value of 1 candlestick ago) is displayed in the Red/Downwards Slope color.
Analysis in Forex Trading
