Linear Regression Forecast
In statistics, linear regression is a method of estimating the conditional expected value of one
variable y given the values of some other variable or variables x.The Linear Regression Forecast
indicators optionally smoothes the price data, performs a regression on the result, forecasts the
regression lines if desired, and then optionally creates standard deviations bands above and
below the regression line.
First, the data, based on the price selected, is smoothed using the moving average period and
type. The resulting data is then used to form regression lines ending at each bar, using the
regression period specified. The values at each bar can optionally be forecasted values,
determined by projecting the regression lines X bars into the future, X being the forecast period.
If X=0, then no forecasting will occur. Standard deviation bands can then be drawn above and
below the regression line, based on a number of standard deviations (standard deviation
multiple) specified, and a standard deviation value computed using data in the the regression
It is use as the overall trend line for that given period & support and resistance level. It displays
the statistical trend of a security's price over a specified time period. The trend is based on linear