TrendLinearReg - MetaTrader 5 Script - MetaTrader 5 Script

(Converted from https://www.mql5.com/en/code/7883)

How are trends changing? How to determine the real estate? How to trade? ...etc. This indicator will help answer these questions.

If you assume that the trend within N bars is a straight line, you can calculate the parameters of this line. You know the equation of a straight line from school, it is y = bx + с. The slope of a line is characterized by the "b" coefficient, or the tangent of the slope angle. The indicator uses linear regression on each bar to calculate this parameter and displays it in a separate window. If the color is green, it means that the value is larger than the previous value, that is, the tilt angle increases, and red means the opposite.

In fact, the "b" coefficient in the chart consists of two coefficients: the tangent of the line angle and the coefficient characterizing the currency pair (probably a point), so the scale of the indicator differs on different currency pairs.

How to use indicators? I think there are several variations:

1. Cross the zero line.

2. Maximum value channel.

3. If you identify an area near the zero line, then it is a flat area and you can trade on the breakout.

If anyone has ideas on how to improve this indicator or how to use it, I'd be grateful.

Attachment download

📎 trendlinearreg.mq5 (3.23 KB)

Source: MQL5 #41943