Linear Regression Bitcoin Analysis & Linear Regression Trading Signals
Another name for a regression line is a line of the best fit/best fit line. This btcusd indicator plots the bitcoin trend of the bitcoin price over a specified duration of time. The market bitcoin trend is determined by calculating a Linear Regression Bitcoin Trend Line using "least squares fit" method. This method helps to minimize the distance between the bitcoin price data points and the line of best fit.
Unlike the straight Regression Trend-Line technical indicator, the indicator draws the end values of multiple Linear Regression trend-lines. Any single point along the Linear Regression will be equal to the end value of a Regression Trendline, but resulting bitcoin trendline looks like the Moving Average.
But unlike the Moving Average, this trading indicator does not show as much delay since it's fitting a line on to information points rather than averaging them.
The Linear Regression is a prediction of the tomorrow's bitcoin price drawn today, one day before. When the bitcoin prices are steadily higher or lower than the forecast bitcoin price, then a bitcoin trader can expect them to quickly return to more realistic fore-casted levels.
In other terms, this indicator shows where the chart bitcoin prices "should" be trading based on a statistical basis & any disproportionate deviation from the regression line is likely to be short-lived.
BTCUSD Analysis and How to Generate Signals
This btcusd indicator allows for bitcoin price chooseion, adjusting number of periods and smoothing of bitcoin price data before applying the calculation & the selection of smoothing type.
This btcusd technical indicator looks like a moving average but it has a bi-colour representation.
- Bullish Signal (Blue color) - A rising line (greater than its previous value 1 previous bar before) is displayed in the up bitcoin trend blue color, while
- Bearish Signal (Red color) - a declining line (lower than its previous value 1 previous bar before) is displayed in the down bitcoin trend red color.
Analysis in Bitcoin Crypto Currency Trading
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