Linear Regression Acceleration Technical Analysis & Signals

Linear Regression Acceleration calculates the change in the regression line's gradient on the current price bar from its gradient from the previous price bar. The value used in calculating the linear regression is referred to as the normalized acceleration value which is drawn for each stock price bar formed on the price chart.

Linear Regression Acceleration

If normalized acceleration is 0.30, then regression line normalized slope will be rising at a rate of 0.30 per each price bar.

Similarly, a normalized slope of -0.40 would indicate that the regression line normalized slope is falling at rate of -0.40 per price bar.

For example, if the current price bar normalized slope value is 0.40 and the previous price bar normalized slope value is 0.20, then the normalized acceleration of the current bar would be calculated as 0.40 - 0.20 = 0.20.

Note: It's important to realize that a positive acceleration value doesn't equate to a positive slope value, it simply means that the slope gradient is increasing. A negative acceleration reading does not equate to a negative slope value, it simply means the gradient of the slope is decreasing.

Implementation of Linear Acceleration Regression Trading Indicator

The Linear Regression Acceleration allows for the following; stock price selection, regression periods, smoothing of raw price before applying the regression and selection of the smoothing type.

The resulting regression slope is displayed as a bi-colored histogram that oscillates above and below 0.

The reference line is set at Zero mark.

• A rising upward slope: (greater than its previous value of 1 bar before) is displayed in up slope color.
• A declining slope: (lesser than its previous value of 1 price bar before) is revealed using the down slope colour.

Get More Topics & Guides:

• What's S and P 500 Chart?
• How Can You Find SPAIN35 on MT4 iPad Trade App?
• MACD Index Strategy Analysis Summary
• How Can I Add EU 50 on MT4 iPad Mobile App?
• How to Get MetaTrader 4 EU50 Trading Chart
• The Main Index Part of a Stock Index Plan is Your Indices Program
• How Can I Find US 500 in MT5 iPad App?
• Index RSI Over-bought and Oversold Levels: RSI 70 and RSI 30 Indices Levels