Regression Line

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Regression Line

A Regression Line is a line of best fit through the selected data points.

This line is calculated using a linear regression calculation.

Position and Edit

To apply a regression line to a price chart, left click at the date the regression line is to be calculated from, then move the cursor to the date of the regression line's end point and click a second time.

The price level at which the clicks occur does not matter. The software uses a mathematical formula to calculate a gradient using the values of the price data type for each trading interval between the selected dates.

The default price data type is Close. Users can change the data type by selecting Open, High, Low or Close from the Calculate Using command's drop-down menu in the Regression Line Properties dialog box.

drawtool_regrsnline.png

In the above example, the green dashed Regression Line is calculated using the Close price data, while the red dashed Regression Line is calculated for the same time-period using the Low price data.

After placing the line on the chart, it can be moved and resized by dragging the "handles" common to Your SOFTWARE tools.

As the regression line is re-positioned or resized, its gradient (both angle and length) will be recalculated and re-plotted onto the screen.

The line's position and size can also be manually altered by entering new Start / End Dates in the Regression Line Properties dialog box.

The line can also be extended and locked.

Properties and Format

Double-click the line to open the Regression Line properties dialog box.

Use the standard properties functionality to adjust the line's position (date), color and style properties.

Pop-up Menu

The pop-up menu (single right mouse click) for Regression Line has the standard links: Properties, Cut, Copy, Delete, Lock and Help.

In addition to the standard links, the pop-up menu includes the Parallel Trendline command.

Click this to create a parallel line.

Note - This function will create one parallel Trendline, not a duplicate Regression line. The resulting line is not a Regression line and will not have regression line functionality and its gradient will not be recalculated. When you move or resize the new line it will adhere to standard trendline functionality.

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