linear regression slope indicator
Info
The linear regression slope indicator is a Indicator for MetaTrader 5 that this indicator calculates the slope of a linear regression line fitted to price data. the equation for the line is:y[x] = y0 + b*xwhere:- x is the bar number (1 to n)- y[x] is the corresponding price value (open, close, median, etc.
Usage
This tool is typically used for enhancing chart analysis and decision making.
Platform
This Indicator works exclusively on MetaTrader 5 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL5/Indicators folder via File ? Open Data Folder in MetaTrader 5.
How to Install and Use linear regression slope 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
this indicator calculates the slope of a linear regression line fitted to price data.
Typical Use Case
This Indicator excels in automated trading and technical analysis on MetaTrader 5.
Compatible Platform & Setup
This Indicator works on MetaTrader 5. Place the file in the MQL5/Indicators folder and restart the terminal.
Description & Settings
Related: nadaraya-watson kernel regression for institutional-grade volatility analysis - another powerful indicator for MetaTrader 5 traders.
this indicator calculates the slope of a linear regression line fitted to price data. the equation for the line is:Also recommended: linear regression channel indicator - similar indicator with strong performance on MetaTrader 5.
y[x] = y0 + b*x
where:
- x is the bar number (1 to n)
- y[x] is the corresponding price value (open, close, median, etc.)
- b is the proportionality coefficient
- y0 is the bias
the slope, represented by the coefficient b, is calculated using the formula:
b = (n*sxy - sx*sy)/(n*sxx - sx*sx)
where:
- sx = sum(x, x = 1..n) = n*(n + 1)/2
- sy = sum(y[x], x = 1..n)
- sxx = sum(x*x, x = 1..n) = n*(n+1)*(2*n+1)/6
- sxy = sum(x*y[x], x = 1..n)
- n is the period of the linear regression slope (input parameter per)
the denominator of b can be simplified to:
n*sxx - sx*sx = n*n*(n-1)*(n+1)/12
simplifying the entire equation for b yields:
b = 6*(2*sxy/(n + 1) - sy)/n/(n - 1)
the coefficient b is not normalized, and normalization is required to ensure consistent indicator values across different currency pairs. normalization is achieved by dividing b by a simple moving average (sma) or a linear weighted moving average (lwma):
sma = sy/n
lwma = 2*sxy/n/(n + 1)
the corresponding normalized versions of the linear regression slope are:
lrs_sma = b/sma = 6*(2*sxy/sy/(n + 1) - 1)/(n + 1)
lrs_lwma = b/lwma = 6*(1 - (n + 1)*sy/sxy/2)/(n + 1)
both normalization methods produce nearly identical results, so the sma normalization is used for the indicator. due to the small values of the linear regression slope, the indicator values are scaled by parts per 100 thousand to fit within the range of -100 to +100.
You may also like: Regression Analysis Indicator for MT4/MT5 - excellent alternative for indicator users on MetaTrader 5.
Source Code
#property copyright "robotfx"
#property version "1.00"
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_plots 1
#property indicator_label1 "lrs"
#property indicator_type1 draw_line
#property indicator_color1 blue
#property indicator_style1 style_solid
#property indicator_width1 1.......
⚠ 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.