The Linear Regression Trendline indicator plots a line aimed at fitting the asset's price data over a fixed time frame. This may provide a graphical representation of the trend direction and its relative strength. Key considerations include:
Trend Analysis: The indicator may assist in visually identifying the general direction of the prevailing trend, whether it appears to be upward, downward, or sideways.
Trend Confirmation: The indicator could offer additional data that may either align with or provide contrast to existing trading observations.
Parameters:
Price: The default setting is based on the "Close" price. Other options include High, Low, Open, Volume, VWAP, HL2, HLC3, OHLC4, Implied Volatility, and Open Interest to suit various analytical requirements.
Linear Regression Trendline on chart
*Please note that these observations are for informational purposes and should not be construed as financial advice.