Liner regression
This professional-grade solution for MetaTrader 5 helps traders achieve greater efficiency in their daily workflow. This technical indicator acts as a specialized analysis tool designed to visualize market data. It helps traders identify emerging trends, momentum shifts, and key support or resistance levels by plotting statistical calculations directly onto price charts.
How to Setup and Use Liner regression
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.
Description & Settings
Theory:
Linear regression attempts to model the relationship between two variables by fitting a linear equation to observed data. One variable is considered to be an explanatory variable, and the other is considered to be a dependent variable. For example, a modeler might want to relate the weights of individuals to their heights using a linear regression model. The equation is the following:
Where x is a number of bars and y are prices.
The ratios of the mentioned equation are calculated as follows:
There are quite a few good implementations (some are explained in a very good way here : but there are some issues that needed to be addressed (mainly that some methods are not suitable for usage on in-code data ...).
This is "yet another" method that is producing exact results (without an approximation) as the "to the last letter" method, that can be used on arbitrary data and is fast (it is faster than even the method that is using built in functions to speed up the calculation). Execution time does not depend on the calculation period (it is negligible slower for very large periods than the calculation for short periods) which makes it suitable for usage in all sorts of filtering / calculating / smoothing ...
Usage:
You can use the color change as a signal
