The Standard Error indicator quantifies the difference between prices and the linear regression line.
It is obtained by calculating the standard deviation between prices and the linear regression
line.
The Standard Error is analogous to the standard deviation which quantifies
the difference between prices and the arithmetic moving average.
Calculation Method
where:
P: Period
Lin: Linear regression line function over the period
Example
Interpretation
The Standard Error is lower when prices are close to the linear regression line,
indicating that it represents the trend satisfactorily.
Conversely, a high Standard Error indicates uncertainty about this trend.
