# Linear Regression trading indicator Forex.

Linear Regression - it's a mathematic method to define linear dependency between variables. This method often uses by analytics for defining trend, based on price data ant time. Mathematic formula for Linear Regression looks as follows:

**y = a + bx**

where:

y - close price

x - location current time period in data base

a = (Ey - bEx)/n

b = (nExy - ExEy)/nEõ2 - (Ex)2

n - amount of time periods at summing

E - sum for n periods

At Linear Regression uses least square method, for draw line into data. The best line is defined by minimize of distance between data points and Linear Regression line.

# Linear Regression slopping

Linear Regression - it's a mathematic method to define linear dependency between variables. This method often uses by analytics for defining trend, based on price data ant time.

Linear Regression slopping trading indicator Forex allow to define, how much is the price changed for the unit of time. One from some rules for trading decisions - using Linear Regression slopping as trading indicator for generating trend following signals. Positive Linear Regression slopping (increased Linear Regression) it's the "bullish" signal, another words, it's buy then Linear Regression slopping more zero. Negative Linear Regression slopping (decreased Linear Regression) it's the "bearish" signal, another words, it's sell then Linear Regression slopping less zero.