Home > Technical analysis > Technical indicators > Linear Regression Slope

Linear Regression Slope

The usage of Linear Regression slope is prediction of the following forex market values based on the previous ones. It is considered as a statistical engine. The linear Regression is usually drawn as a straight line, similar to a trend line on a price chart. Still the linear regression indicator does not correspond a straight line following the price fluctuations while being traced.

Each end point of an imaginary linear regression trend line makes up a path for this curve. All these imaginary trend lines are placed at nearest distance (length) to the closing prices through 'least squares' method applied to the input set bars.

It helps to find out the possible values of the forex market's prices in the predicted future according to recent and present data. If a price trend rises or descends, the linear regression suggests the possible angle of an uptrend/downtrend basing on the current price. It is thought that if the price differs from the linear regression line, it gets too strained and starts motion in direction to the line. Thereby this monitor allows us to understand the moment of price trend change.

Our visitors also find this page by following search requests: classical linear regression model, define linear regression, general linear regression, generalized linear regression, interpreting linear regression, introduction to linear regression analysis, linear regression definition, linear regression explained, simple linear regression analysis, simple linear regression equation, simple linear regression model, using linear regression, what is a linear regression.