Nonlinear Regression - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources

First, a brief introduction to nonlinear regression:

Nonlinear regression is a form of regression analysis in which data are fit to a model and then expressed as a mathematical function. Simple linear regression relates two variables (X and Y) to a straight line (y = mx + b), while linear regression must generate a straight line (usually a curve) as if each value of Y was a random variable. The goal of this model is to make the sum of squares as small as possible.

The sum of squares is a measure that tracks how different an observation is from the mean of a data set. It is calculated by first finding the difference between the mean and each data point in the set. Then, square each difference. Finally, add all the square numbers. The smaller the sum of these squares, the better the function fits the data points in the set. Nonlinear regression uses logarithmic, trigonometric, exponential, and other fitting methods.

This indicator is the MetaTrader 5 version of nonlinear regression. Nonlinear regression is very "fast" in responding to sudden market changes, so the default calculation period is set to a longer period than is typical for similar types of indicators. Therefore, it is recommended to do some experimentation with cycles depending on your trading strategy and trading style.

Attachment download

📎 nonlinear_regression.mq5 (10 KB)

Source: MQL5 #20480