Linear Regression Slope Silver Technical Analysis and Linear Regression Slope Trading Signals

The Linear Regression Slope indicator calculates slope/gradient value of regression lines which involves the current xagusd price bar & the previous n-1 xagusd price bar (where n = regression periods)

This Indicator calculates this value and updates it for each xagusd price candlestick loaded in the xagusd price chart.

The Indicator is calculated from the Linear Regression Silver Technical XAGUSD Silver Trading Indicator. The linear regression plots the silver trend of the xagusd price chart over a specified duration of time and this market silver trend is determined by plotting a Linear Regression Silver Trend Line using the "least squares fit" method. The slope of this silver trend line is then calculated and this forms the linear regression.

Linear Regression Slope

The slope values are then smoothed by multiplying the raw slope indicator values by 100 and then dividing this value by the xagusd price

Linear Slope Regression = (raw value of slope * 100 / xagusd price).

The smoothing of the slope values is essential when comparing markets which are volatile and trade within wide xagusd price ranges for each xagusd price candlestick. Smoothed slope value will show the percent change in the xagusd price per every candle used to calculate the regression (best fit) line.

XAGUSD Trading Analysis & Generating Trading Signals

• If the smoothing of the slope is 0.30, then the regression line is rising and adjusting at a rate of 0.30% for every candle.
• If the smoothing of the slope of -0.30, then the regression line is going down & adjusting at a rate of -0.30% for every candle.

The regression slope is displayed as a bi-color histogram that oscillates above & below zero center-line. Center line that is used to generate silver signals is set at the 0 level.

• A rising slope (greater than the previous value of 1 candle ago) is displayed in the Blue/Upward Slope color,
• A declining slope (lower than the previous value of 1 candle ago) is displayed in the Red/Downward Slope color.

Technical Analysis in XAGUSD Trading