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How to Set Linear Regression Slope on MetaTrader 4 Charts

Step 1: Open the Navigator Panel on Trading Software Platform

Open the Navigator window as shown below: Click on the 'View' menu, then click 'Navigator' window, or click the 'Navigator' button from the Standard Toolbar, or press the keyboard shortcut 'Ctrl+N.'

On Navigator window, choose and select 'Indicators', (Double Press)

How to Set Linear Regression Slope in MT4 - How Do You Use Linear Regression Slope in Forex?

Add Linear Regression Slope Indicator to MT4 Charts

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

Expand this menu by clicking the open(+) tool/button marker label ' + ' or doubleclick the 'indicators' menu, afterwards this particular given button will appear and be shown as (-) & will now display a list like is shown below - select the Linear Regression Slope chart indicator from this list of indicators so that to add the Linear Regression Slope to the chart.

How Do I Set Linear Regression Slope on the Chart? - How to Use Linear Regression Slope Indicator

How to Place Linear Regression Slope - From the window above, you can put the Linear Regression Slope you want as a trader on the chart.

How to Set Custom Linear Regression Slope to MT4

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

Instructions on installing Linear Regression Slope indicators on the MT4 Platform, adding the Linear Regression Slope window within MT4, and incorporating the Linear Regression Slope custom indicator into the MT4 Software - a complete guide on adding a custom Linear Regression Slope in MT4.

About Linear Regression Slope Example Explained

Linear Regression Slope Analysis Trading 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 consistently calculates and updates the value for each price candlestick displayed on the chart.

The Indicator is derived from the Linear Regression Indicator, which analyzes market price trends over a specified duration. This trend is established by plotting a Linear Regression Trend-Line using the "least square fit" method, from which the slope is computed, forming the linear regression.

How Do You Use Linear Regression Slope Indicator? - Linear Regression Slope Settings on MT4

Linear Regression Slope

The resulting slope values undergo a smoothing process by multiplying the initial raw slope indicator readings by 100, followed by dividing this result by the current price.

Linear Slope Regression = (raw value of the slope * 100 / price).

It is crucial to apply smoothing to the slope metrics when analyzing and contrasting markets that exhibit significant volatility and trade across broad price ranges for each individual price candle. Smoothing the slope value reveals the percentage alteration in price for every candle utilized in computing the regression (or best-fit) line.

FX Analysis and Generating Signals

  • If the smoothing out of the slope is 0.30, then the regression line is rising and adjusting at the rate of 0.30 % for every candlestick.
  • If the smoothing out of the slope of -0.30, then the regression line is going downward & adjusting at the rate of -0.30% for every candlestick.

The regression slope appears as a two-color graph that moves up and down around the zero center. The center-line, used to create trade signals, is set at the 0 point.

  • A rising slope (greater than the previous value of 1 candlestick ago) is displayed and shown in the Blue/Upward Slope colour,
  • A declining slope (lower than the previous value of 1 candlestick ago) is illustrated & displayed in the Red/Downward Slope colour.

How to Use Linear Regression Slope - Linear Regression Slope Setting in MT4

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