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Below is the reason I am on this list. This kind of helpful information that
is shared is invaulable. Thanks Trader J.
Charles,
This indicator plots the slopes of two linear regression lines. (Consult
any standard statistics book for an explanation of linear regression if you
are not familiar with it.) The first regression line is a "fast" linear
regression line. This line is, by default, based on the closing prices of
7 bars of data (as set by the input FastLen). The second regression line
is a "slow" linear regression line, based on 30 closes (SlowLen), by
default. Remember, however, that it is the *slopes* of these linear
regression lines that will be calculated by the LinearRegSlope function and
plotted as the indicator.
This sort of indicator is known as a "momentum" indicator in trading. It
is a measurement of how quickly closing prices are changing in 2 time
frames. A typical interpretation of this indicator would be to buy when
the "LRS Fast" crosses above the "LRS Slow". Sell when the "LRS Fast"
crosses below the "LRS Slow". (This is a typical interpretation of such
indicators, best used, like all overbought-oversold indicators, in
non-trending markets.)
All the best,
Trader J
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