Linear Regression Slope Bitcoin Trading Analysis and Linear Regression Slope Bitcoin Trading Signals

The Linear Regression Slope calculates the slope/gradient value of regression lines which involve the current btcusd price bar and the previous n-1 btcusd price bar (where n = regression periods)

This Indicator calculates this value and updates it for each btcusd price candlestick loaded in the btcusd price chart.

The Indicator is calculated from the Linear Regression Bitcoin Technical Indicator. The linear regression plots the bitcoin trend of the btcusd price chart over a specified duration of time and this market bitcoin trend is determined by plotting a Linear Regression Bitcoin Trend Line using the "least squares fit" method. The slope of this bitcoin trend line is then calculated and this forms the linear regression.

Linear Regression Slope

The slope values are then smoothed by multiplying the raw slope indicator values by 100 and then dividing this value by the bitcoin price

Linear Slope Regression = (raw value of slope * 100 / bitcoin price).

The smoothing of the slope values is essential when comparing markets that are volatile and trade within wide btcusd price ranges for each btcusd price candlestick. The smoothed slope value will show the percent change in the btcusd price per every candlestick used to calculate the regression (best fit) line.

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

• If the smoothing of the slope is 0.30, then the regression line is rising and adjusting at a rate of 0.30% for every candlestick.
• If the smoothing of the slope of -0.30, then the regression line is going down and adjusting at a rate of -0.30% for every candlestick.

The regression slope is displayed as a bi-color histogram that oscillates above and below zero center line. The center line that is used to generate bitcoin trading signals is set at the 0 level.

• A rising slope (greater than the previous value of 1 candlestick ago) is displayed in the Blue/Upward Slope color,
• A declining slope (lower than the previous value of 1 candlestick ago) is displayed in the Red/Downward Slope color.

Technical Analysis