Description
Linear regression is a popular method of technical analysis. Using linear regression line as a drawing allows you to analyze any section of the chart.
In order to add the regression line to chart, choose it from the Active Tool menu. Specify begin and end points: these will be snapped to the closest bars. Application will automatically adjust the slope of the line based on linear regression.
For your convenience, we added a label to the regression line, which displays its principal parameters: the length (as expressed in both number of bars and time units such as days, hours, minutes, depending on the timeframe you are using), the price change correspondent to the difference between its start and end points (expressed in both dollars and percentage), and its slope.
Properties
Appearance:
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Visible. Set this property to "No" in order to hide the regression line.
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Label position. Defines where the regression channel label should be shown.
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Show label. Defines whether to always show the label at the specified position, or on mouse hover only, or to hide it completely.
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Left extension. Set this property to "On" to extend the regression line all the way to the left. Note: this action will not recalculate the whole line, but just extend the existing line.
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Right extension. Set this property to "On" to extend the regression line all the way to the right. Note: this action will not recalculate the whole line, but just extend the existing line.
Length:
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Length. Defines the number of bars for which the linear regression is calculated. Note: after recalculation, the bars will be added to or removed from the right endpoint of the line.
Begin point:
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Date/Time. Defines the time scale value corresponding to the begin point.
End point:
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Date/Time. Defines the time scale value corresponding to the end point.
Note that you can transform the regression line into Channel; to do so, right-click the line and choose "Redraw as Channel". Note also that the channel cannot be transformed back into the line.