Linear Regression Bitcoin Trading Analysis and Linear Regression Bitcoin 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 btcusd price over a specified duration of time. The market bitcoin trend is determined by calculating a Linear Regression Bitcoin Trend Line using the "least squares fit" method. This method helps to minimize the distance between the btcusd price data points and the line of best fit.

Unlike the straight Regression Trend-Line indicator, the indicator plots 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 Trend-line, but the resulting bitcoin trend line looks like the Moving Average.

But unlike the Moving Average, this indicator does not show as much delay since it is fitting a line onto data points rather than averaging them.

The Linear Regression is a prediction of the tomorrow's btcusd 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 and any disproportionate deviation from the regression line is likely to be short-lived.

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

This btcusd indicator allows for btcusd price selection, adjusting number of periods and smoothing of btcusd price data before applying the calculation and the selection of smoothing type.

This btcusd indicator looks like a moving average but it has a bi-color 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.

Technical Analysis