Linear Regression Acceleration Energies Technical Analysis & Trading Signals

Linear Regression Acceleration calculates the change in the regression line's gradient on the current energies price bar from its gradient from the previous energies price bar. The value used to calculate the linear regression is referred to as the normalized acceleration value which is drawn for each energies price bar formed on the energies price chart.

Linear Regression Acceleration

If normalized acceleration is 0.30, then the regression line normalized slope will be rising at the rate of 0.30 per energies price bar.

Similarly, a normalized slope of -0.40 would indicate that regression line normalized slope is declining at rate of -0.40 per energies price bar.

For example, if the current energies price bar normalized slope value is 0.40 and the previous energies price bar normalized slope value is 0.20, then the normalized acceleration of the current energies price bar would be calculated as 0.40 - 0.20 = 0.20.

Note: It's important to realize that a positive acceleration value does not equate to a positive slope value, it simply means gradient of the slope is increasing. A negative acceleration value does not equate to a negative slope value, it simply means the gradient of slope is decreasing.

Implementation of Linear Acceleration Regression Technical Indicator

The Linear Regression Acceleration indicator allows for the following; energies price selection, regression periods, smoothing of raw energies price before applying the regression and selection of the smoothing type.

Resulting regression slope is displayed as a bi-colored histogram which oscillates above & below 0.

reference line is set at the 0 level mark.

• A rising slope; (greater than its previous value 1 bar before) is displayed in the up slope color.
• A declining slope; (lower than its previous value 1 bar before) is displayed using the down slope color.