Linear Regression
The Linear Regression indicator is a tool in technical analysis that calculates and displays a trend line based on the linear regression method, that is, a line that minimizes the distance to price points over a specific period. This indicator helps traders identify the direction of the trend and predict future price movements by identifying dynamic support and resistance zones.
Using Settings
Clicking on the indicator settings icon will open its configuration window, within which you can make several choices regarding the indicator's functionality.
Parameters
In the Parameters section you can select:
- Input Data: The price data to use for calculation (Close, Open, High, Low and Volume)
- Length: The number of periods over which the linear regression line is calculated (default: 21 periods)
Subgraph
In the Subgraph section you can change the colors and style of the line:
- Regression Line Color: Set the color of the regression line
- Secondary Color: Set an optional secondary color
- Subgraph Style: Choose the display style
- Line Style: Define the line style
- Line Width: Define the width of the line
- Use Secondary Axis: Option to display on a secondary axis
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