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Linear Regression Acceleration Bitcoin Trading Analysis & Trading Signals

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

Linear Regression Acceleration Bitcoin Indicator - Linear Regression Acceleration Trading MT4 Indicator

Linear Regression Acceleration

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

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

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

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

Implementation of Linear Acceleration Regression Indicator

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

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

The reference line is set at Zero mark.

  • A rising slope: (greater than its previous value of One bar before) is displayed in up slope color.
  • A declining slope: (lower than its previous value of One bar before) is displayed using the down slope color.

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