Linear Regression RSquared
Linear regression is a common statistical method used to forecast values using least squares fit. The Linear Regression R-Squared function determines the extent of a linear relationship of a field to time over a given period of time R-squared shows the strength of trend. The more closely prices move in a linear relationship with the passing of time, the stronger the trend.
R-squared values show the percentage of movement that can be explained by linear regression.
One of the most useful ways to use r-squared is as a confirming indicator. Momentum based indicators and moving average systems require a confirmation of trend in order to be consistently effective. R-squared provides a means of quantifying the trend of prices.
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