Linear Regression Statistics

Linear Regression Statistics

Regression channel: this ProRealTime script is designed to generate a linear regression channel and perform several analytical determinations based on this regression.

Here’s a complete analysis and explanation of the code:

  1. **Parameter definition** : The script begins by defining the parameters of the regression channel, such as channel type, deviation multiplier and drawing colors.
  2. **Regression calculations**: it uses a “for” loop to calculate the sums of price (sumy), time (sumx) and their respective products and squares needed to compute the slope (b ) and y-intercept (a) of the linear regression line.
  3. **Draw the regression line**: Once “a” and “b” have been determined, a segment is drawn to represent the regression line.
  4. **Calculate channel width** : The channel width is determined by the standard deviation or standard error multiplied by a deviation factor “NbDeviation”.
  5. **Draw channel**: The script draws the upper and lower limits of the channel, as well as the median line. Green triangles suggest bullish zones and red bearish zones, indicating buy and sell zones.

 

 

 

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Risk disclosure:

No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

ProRealTime ITF files and other attachments : How to import ITF files into ProRealTime platform?

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