Linear Regression Slope Indicator
Platform: MT4 Type: Trend Last update: September 28, 2024The Linear Regression Slope Indicator for MT4 is, as the name suggests, an forex indicator that plots the slope of the linear regression channel.
You can use it mainly for the determination of the market trend strength. The higher value of the Linear Regression Slope, the stronger trend-momentum takes place.
Trading approaches with the linear regression slope indicator
There are three ways to use the Linear Regression Slope Indicator.
First of all, to identify strong market trends using high values of the indicator.
The second method is to recognize the sideways (low momentum) market, it happens when the indicators values are low.
One can even use it for trading signals generation, potential trades can be spotted at the change between positive and negative values (zero level). However, we suggest using it with some other technical analysis indicator.
Buy Signal
Follow these steps for a long trade:
- Bars of the Linear Regression Slope change from red to green
- Price swings higher from recent low swing
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last swing low of the market
- Take profit at some important market level or use your own method of trade exit
Sell Signal
Follow these steps for a short trade:
- Bars of the Linear Regression Slope change from green to red
- Price swings lower from recent high swing
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the last swing high of the market
- Take profit at some important market level or use your own method of trade exit
