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How good is linear regression indicator while analyzing stock market charts??

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Question added by Bilal Khan , Senior Tax Accountant , Finvesco Limited
Date Posted: 2015/03/12
Munir Ahmed
by Munir Ahmed , Associate Professor , Islamabad Model Postgraduate College for Boys H-8, Pakistan

The linear regression provides a trend of average increase or decrease of price, it best fits the price change. One can compare the actual price with the price represented by the linear regression line.

ايمن محمد عاطف محمد
by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

(charting)( technical iindicators)

Linear Regression) statistical method to follow the trend. Results are usually close to the moving

average and methods used are similar.How to useThe direction of the indicator shows whether bullish or bearish trend in the market at the present time.Technical Analysis Securities on the study of price movements in the market focus to determine the timing of entry and exit from the market and is not a substitute for fundamental analysis of securities but is complementary and supportive to him where depends technical analysis on the idea that history repeats itself and indicators of technical analysis aims to identify the direction of movement in the market Securities, which depends on a set of variables most important trend in the market price and historical movement and trading volume, and measure the impact of the purchase and the strength of sales force and effect both on the other and a reflection on the price movement

Fees intra-linear: The simplest types of graphs where the X-axis represents the graph of time or date and represents the axis of the closing prices.

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