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    Linear Regression Slope (LRS)
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      Linear Regression Slope (LRS)

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        Article summary

        DXcharts powers DXtrade, DXfina, and FinCharts.
        Check our website to find more information about DXcharts library.

        Linear Regression Slope (LRS) is an oscillator based on the linear regression algorithm which makes the line more sensitive to the price changes. The normalized slope value reflects the strength of the trend, where positive values generally make up an uptrend and negative values can be considered as a downtrend.

        Regression slope uses calculation of the linear regression for each bar.

        y = a + bx
        b = (nΣxy - ΣxΣy) / ( nΣx2 - (Σx)2 ))
        a = (Σy - bΣx) / n

        where:
        y – the data price source
        x – the number of bars
        a – the constant (the value when x equals zero)
        b – the slope of the line
        n – the number of data points selected

        Linear Regression SlopeLinear Regression Slope

        INPUTS

        Price
        The following data sources are available for calculation of the LRS:
        • Open. The Open Price of every bar for the specified period.
        • High. The High Price of every bar for the specified period. 
        • Low. The Low Price of every bar for the specified period.
        • Close. The Close Price of every bar for the specified period. 
        • Median. The Median Price of every bar for the specified period - (High + Low) / 2.
        • Typical. The sum of High, Low, and Close prices divided by 3 for the specified period - (High + Low + Close) / 3.
        • OHLC average. The arithmetical mean of High, Low, Open, and Close prices for the specified period - (Open + High + Low + Close) / 4.
        • Volume. The Close Price of every bar + average volume of an asset for the specified period.
        InputDescription
        LengthThe number of bars used to calculate the LRS

        PLOTS

        The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.

        PlotDescription
        LinearRegressionSlopeThe Linear Regression Slope plot
        Color

        Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color.

        Palette

        To create a custom color:

        1. Clickto open the color picker
        2. By using the slider at the bottom, adjust the main color
        3. Then, set a shade for the main color on the palette

        The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette.

        Weight
        Change the value (in px) to adjust the thickness of the plot.
        Type
        The following plot types are available:
        • Linear. The plot is displayed as a line.
        • Column. The plot is displayed as a histogram.
        • Difference. The plot is displayed as a line which represents the difference between High and Low prices of the bar.
        • Points. The plot is displayed as points.
        • Text above candle. The plot is displayed as the price labels above candles on the chart.
        • Text below candle. The plot is displayed as the price labels below candles on the chart.
        • Triangle above candle. The plot is displayed as triangles above candles on the chart.
        • Color candle. The candles on candle-type charts are highlighted with specified colors.

        OVERLAYING

        Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.

        Note: To reset the settings, click Restore to Default next to the SETTINGS: INDICATOR'S TITLE
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