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Linear Regression

Classic statistics classic volatility trend

Linear Regression plots a straight line that best fits the data prices.

Usage

Use for statistical analysis of price series: linear regression, standard deviation, correlation coefficients, and other descriptive statistics used as indicator inputs.

Background

Standard statistical measures provide the mathematical foundation for many technical indicators. Linear regression finds the best-fit line through price, standard deviation quantifies dispersion, and correlation coefficients measure how closely two series move together — all are essential for quantitative strategy construction.

Parameters

  • period (default: 14): Period

Formula

[ y = a + bx ]

Source