The Linear Regression Reversal indicator displays a subgraph that ranges from +1 to -1, with a zero-line serving as a central reference point. The subgraph values are calculated based on the comparison between the current value of a Linear Regression Curve and that of the previous bar.
A value of +1 may suggest that the current Linear Regression Curve value is equal to or greater than the previous bar's, possibly indicating a positive shift in trend dynamics. Conversely, a value of -1 may imply that the current value is less than the previous one, which could hint at a negative shift. These numerical values may serve as additional data points for traders looking to understand market behavior and potential shifts in asset price movement.
Linear Regression Reversal: The subgraph values, ranging from +1 to -1, indicate how the current value of the Linear Regression Curve compares to the previous bar.
Zero Line: Serves as a central reference point within the subgraph, facilitating easier interpretation of the +1 and -1 values.
Parameters:
Length: Set initially at 14 periods, this parameter controls the number of periods used for the linear regression calculation.
Linear Regression Reversal Indicator subgraph on chart
*Please note that these observations are for informational purposes and should not be construed as financial advice.