Linear Regression

May 05, 2021

The Linear Regression Line indicator in the Advanced Chart gathers the prices for the number of specified periods and finds a straight line which best fits all the prices using a linear regression model. This model uses every point on the chart to determine a trend line that gives a good estimation of the entire chart with a single line.

Interpretation: Since the Linear Regression indicator displays the statistically-predicted price value, you can look for cases where price veers sharply from the predicted line through that period.