Linear Regression Detrended

Here the straight line is just the Linear Regression line. In addition to this there is a Linear Regression Detrended line. This line is calculated by subtracting the value of the linear regression line from the data. This is so that you can focus your analysis on the fluctuations of the price level around the linear regression line/trend.

 

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Linear Regression Detrended

Linear Regression Detrended

Here is an example of the Linear Regression Detrended chart study (on a London Stock Exchange graph)




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