Linear Regression Slope

This indicator provides the slope of the linear regression line. It therefore indicates the trend of the security, upward when the slope is above zero and downward when it is below zero.

Furthermore, this indicator gives an indication of the speed at which the security evolves. The more positive the slope, the stronger the progression speed of the security, and vice versa.

The linear regression slope can also be presented in a normalized form, which offers the advantage of being able to compare the slopes of several securities together by therefore abstracting from the price level of each security, which would otherwise bias the comparison of trend strength.

Example

Note

This trend indicator requires confirmation. Generally, the R-squared indicator is observed simultaneously to verify the strength of the trend.