Linear Regression Indicator comes up with a very simple idea to plot both the trend and the trade signal with a single line moving average slope based on linear regressions. This is such an indicator that can be followed and applied by anybody (including newbies) to execute their daily trading operations.
Linear Regression Indicator mostly used for scalping purposes but you can also apply it for intraday trading purposes as it suits with all sort of timeframe charts in between M1 and D1. Besides, this indicator suits with all kind of Forex currency pair’s for trading purposes.
Linear Regression Indicator Overview:
After you install the Linear Regression Indicator at your Forex MT4 terminal, your trading chart will appear as the following image:
Linear Regression Indicator changes its color to signal the different status of the current market trend. For a bullish trend, the price must be closed above the indicator level and the indicator must be turned into green. A yellow color indicates the trend as neutral. And for the bearish trend, price holds its position below the indicator level and the indicator must be turned into the red for a sale confirmation. Traders usually exit their entry whenever they counter the opposite signal direction of their entry generated immediately by the indicator.
Linear Regression Indicator: Buy Parameters
- Price closes above the Linear Regression level
- Linear Regression turns green
- Price bar closes as a solid bullish candle
- Buy triggers when all of the above conditions are met
- Set stop loss below the regression level
- Exit long/take profit, whenever the regression level turns red
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Linear Regression Indicator: Sell Parameters
- Price closes below the Linear Regression level
- Linear Regression turns red
- Price bar closes as a solid bearish candle
- Sell triggers when all of the above conditions are met
- Set stop loss above the regression level
- Exit short/take profit, whenever the regression level turns green