Linear Regression Angle

Linear Regression Angle - this directional movement indicator, which allows not only to define the trend at the time of its origin, but also to determine the points of weakening trend. Indicator Channel calculates the inclination angle of the linear regression and displays it in a separate window as a histogram. Signal line - the simple average of the tilt angle.

The angle of inclination - the difference between the right and left edges of regression (in points), divided by its period.

The angle of inclination greater than 0 indicate an upward trend. The higher the value, the stronger the trend. A value below 0 indicates a downward trend. The lower the value, the stronger the downtrend.

Benefits

• Stable detection trend since its inception to the closure.


• Determining the areas where the trend is weakening, and the land on which the directional movement is resumed.


• It works on any instrument.


• It works on all timeframes.


• Is not redrawn, is not restated.

Options

• Regression Period - linear regression calculation period. The longer the period is, the more stable it is, but the greater the delay.


• SmoothPeriod - smoothing period.

Using

Linear Regression Angle indicator can be used in several ways.

1. As the trend feature: if positive histogram growing trend, with a negative value - falling.


2. To assess the strength of the trend: when the histogram value is positive and above its signal line - a growing trend gaining momentum. If the histogram is below the signal line, but greater than zero, the growing trend is weakening. When the histogram is negative and its value is below the signal line - falling trend is gaining momentum. If the histogram is above the signal line, but is less than zero, the downward trend is weakening.


3. For signal generation: the purchase / sale of the trend when crossing the zero level histogram; purchase against falling trend crossing the signal line from the bottom up in the red zone, also in this case, a signal of closing a short position; sale against the growing trend crossing the signal line from the top down, the growing trend, also in this case, a signal close long position.

Features

The smaller the period of regression Regression Period, the more there are the indicator signals a change in trend.

The smaller the smoothing period SmoothPeriod, the more there are signs of a weakening trend.

Limitation: SmoothPeriod < Regression Period.