FinAnalysis User Guide

## Slope Of Linear Regression |

The slope
of linear regression (__Slope__) is used for prediction of the following
market values based on the previous ones. It is considered as a statistical
engine. The linear regression is usually drawn as a straight line. Still the
linear regression indicator does not correspond to a straight line following
the price fluctuations while being traced. Each end point of an imaginary
linear regression trend line makes up a path for this curve. All these
imaginary trend lines are placed at nearest distance (length) to the closing
prices through 'least squares' method applied to the input set bars.

It helps to find out the possible values of the market prices in the predicted future according to recent and present data. If a price trend rises or descends, the linear regression suggests the possible angle of an uptrend/downtrend basing on the current price. It is thought that if the price differs from the linear regression line, it gets too strained and starts motion in direction to the line. Thereby this indicator allows user to understand the moment of price trend change.

Calculation

where *r _{xy}* is the sample
correlation coefficient between

Chart Example

Implementation and Usage

To initialize __Slope__ indicator use one of the following
constructors:

Slope(Int32, Boolean) – creates new instance of Slope indicator with point window

Use

LineSlope - property to get current value.

Example

C#

1// Create new instance 2Slope slope = new Slope(30, false); 3 4// Number of stored values 5slope.HistoryCapacity = 2; 6 7// Add new data point 8slope.Add(CurrentPrice); 9 10// Get indicator value 11double IndicatorValue = slope.LineSlope; 12 13// Get previous value 14if (slope.HistoryCount == 2) 15{ 16 double IndicatorPrevValue = slope[1]; 17}