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HomeForex MT4 IndicatorsLinear Regression Slope Indicator

Linear Regression Slope Indicator

Introduction to the Linear Regression Slope Indicator

The Linear Regression Slope Indicator 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.

The Linear Regression Slope Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.

How does it work? How to apply in trading?

Trading Rules Explanation

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

Linear Regression Slope Indicator Example of Buy Trade

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

Linear Regression Slope Indicator Example of Sell Trade

As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.

How to set up the Linear Regression Slope indicator in MT4?

Installation Guide

Download the Linear Regression Slope.rar archive at the bottom of this post, unpack it, then copy and paste the Linear Regression Slope.ex4 or Linear Regression Slope.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Bottom Line

The Linear Regression Slope indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex MT4 indicators to download and try.

Download Free Forex MT4 Linear Regression Slope Indicator

To download the Linear Regression Slope Indicator for Metatrader 4 (MT4) for free just click the button below:

Linear Regression Slope Indicator Free Download

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