Linear Regression Line Indicator
Info
The Linear Regression Line Indicator is a Indicator for MetaTrader 4 that the mathematical formula for linear regression is expressed as: y = a + bx, where: y represents the close price. x represents the position of the current time period.
Usage
This tool is typically used for enhancing chart analysis and decision making.
Platform
This Indicator works exclusively on MetaTrader 4 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL4/Indicators folder via File ? Open Data Folder in MetaTrader 4.
How to Install and Use Linear Regression Line Indicator
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
What this tool does
The mathematical formula for linear regression is expressed as: y = a + bx, where: y represents the close price.
Typical Use Case
This Indicator excels in automated trading and technical analysis on MetaTrader 4.
Compatible Platform & Setup
This Indicator works on MetaTrader 4. Place the file in the MQL4/Indicators folder and restart the terminal.
Description & Settings
Related: r-squared indicator: measuring correlation with linear regression - another powerful indicator for MetaTrader 4 traders.
The mathematical formula for linear regression is expressed as: y = a + bx, where: y represents the close price. x represents the position of the current time period. a is calculated as (sum of y / n) - b * (sum of x / n). b is calculated as (n * sum of xy - sum of x * sum of y) / (n * sum of x^2 - (sum of x)^2). n is the number of time periods.Also recommended: indicator regression alert notifier - similar indicator with strong performance on MetaTrader 4.
The method of least squares is employed for linear regressions to fit the line to the data set. The optimal line is determined by minimizing the total squared distance from each data point to the line.
Linear Regression
The Linear Regression indicator shows a regression line based on the specified period. The indicator line is calculated using the least squares method. The indicator has two modes:
1. Linear Regression
2. Asymmetric Linear Regression. In the Asymmetric mode, the indicator displays two additional lines parallel to the regression line. These lines are set at a distance defined by the "Deviation" parameter. The deviation value is multiplied by the current indicator value to establish the distance. The indicator uses the same parameters as the standard Linear Regression indicator.
You may also like: Regression Analysis Indicator for MT4/MT5 - excellent alternative for indicator users on MetaTrader 4.
Source Code
#property copyright "robotfx"
#property link "https://robotfx.org"
#property indicator_chart_window
#property indicator_buffers 1
#property indicator_color1 blue
#property indicator_width1 2
extern int lrlperiod=21;
double lrlbuffer[];
int n=0;
double sumx=0, sumy=0, sumxy=0, sumx2=0, sumy2=0;.......
⚠ Limitations & Risk Warning
- This tool is provided for educational and testing purposes only.
- Past performance does not guarantee future results.
- Trading involves substantial risk of loss. Use on a demo account first.
- Results may vary depending on market conditions, broker, and settings.
- We recommend thorough backtesting and forward testing before using with real funds.